Carmel Corporation Purchased 5% Bonds for $42,000 on January 1

Carmel Corporation purchased 5% bonds for $42,000 on January 1, 2012. On July 1, 2012, Carmel received cash interest of $1,050. The journal entry to record the purchase on January 1 would include a:

A) debit to Cash $ 1,050.
B) debit to Long-Term Investment in Bonds $42,000.
C) credit to Interest Revenue $1,050.
D) credit to Interest Revenue $42,000.