On 1 April, Year 1, Greenway Corporation Issues $20 Million

On 1 April, year 1, Greenway Corporation issues $20 million of 10%, 20-year bonds payable at par. Interest on the bonds is payable semiannually each 1 April and 1 October.
-The adjusting entry (if any) required on 31 December, Year 1, related to this bond issue involves:

A) Recognition of interest expense of $1,000,000.
B) Recognition of interest expense of $500,000.
C) A credit to Interest Payable of $2,000,000.
D) A credit to Cash of $500,000.