Part of the General Obligation Bond Proceeds from a New

Multiple Choice

Part of the general obligation bond proceeds from a new issuance was used to pay for the cost of a new city hall as soon as construction was completed. The remainder of the proceeds was transferred to repay the debt. Entries are needed to record these transactions in the:

A) general fund and capital projects fund.
B) general fund and debt-service fund.
C) trust fund and debt-service fund.
D) debt-service fund and capital projects fund.