A company issues $60 million of bonds at par on January 1, 2007. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years....

A company issues $60 million of bonds at par on January 1, 2007. The bonds pay 10% interest semi-annually on 12/31 and 6/30 and mature in 20 years. The journal entry when the bonds are sold is: (A) Debit: CASH 60 million; Credit: B/P 60 million; (B) Debit: CASH 60 million & Int Exp 3 million; Credit: B/P 60 million & Int/Payable 3 million; ( C) Debit: CASH 60 million & Int Exp 6 million; Credit: B/P 60 million & Int/Payable 6 million; (D) Debit: CASH 60 million & Int Exp 0.6 million; Credit: B/P 60 million & Int/Payable 0.6 million