Fundamentals of Advanced Accounting 5th Edition by Joe Ben Hoyle,Thomas Schaefer,Timothy Doupnik

Exercise 18

The City of Bacon holds cash of $820,000 that was received from the issuance of a bond and, according to the contract, must be spent for the construction of a new elementary school. The city also has $60,000 in supplies. How should the fund balance be reported
a. Restricted-$880,000.
b. Nonspendable-$60,000 and restricted-$820,000.
c. Nonspendable-$60,000 and committed-$820,000,
d. Nonspendable-$60,000 and assigned-$820,000.