Madison Company issues $$12,500$ of bonds at face value on January $1.$ The bonds carry an $8\%$ annual stated rate of interest. Interest is payable in cash on December $31$ of each year. Which of the following reflects the financial statement effects of the first interest payment?

$$

$$

Assets

$=$

Liab

$+$

Equity

Rev

$-$

Exp

$=$

Net Inc.

Cash Flow

a$.$

$($$$1,000)$

$=$

NA

$+$

$($$$1,000)$

NA

$-$

$$1,000$

$=$

$($$$1,000)$

$($$$1,000)$ OA

b$.$

$($$$1,000)$

$=$

NA

$+$

$($$$1,000)$

NA

$-$

$$1,000$

$=$

$($$$1,000)$

$($$$1,000)$ IA

c$.$

NA

$=$

$1,000$

$+$

$($$$1,000)$

NA

$-$

$$1,000$

$=$

$($$$1,000)$

$($$$1,000)$ IA

d$.$

$($$$1,000)$

$=$

$($$$1,000)$

$+$

NA

NA

$-$

$$1,000$

$=$

$($$$1,000)$

$($$$1,000)$ OA

Question $7$ options:

a$)$

a$.$

b$)$

b$.$

c$)$

c$.$

d$)$

d$.$