The City of Spartan's Fiscal Year Ends on December 31

Multiple Choice

The City of Spartan's fiscal year ends on December 31. On October 1, 2020, the city issued $1,000,000 of 6%, 10-year term bonds with semiannual interest payments due on April 1 and October 1 each year, beginning on April 1, 2021. What amount of expenditures should the city recognize in its debt service fund for the years 2020 and 2021? 

A) $60,000 in 2020; $60,000 in 2021.
B) $30,000 in 2020; $60,000 in 2021.
C) $15,000 in 2020; $6,000 in 2021.
D) $0 in 2020; $60,000 in 2021.