Burton County Issued $6 Million of Revenue Bonds to Finance

Burton County issued $6 million of revenue bonds to finance construction of additional physical plant facilities for the City Sewer System that is accounted for in an enterprise fund.The bond agreement requires that $.5 million of the proceeds be invested in U.S.Treasury securities to be used to service the debt if revenues in a particular year are insufficient to do so.At the time of the sale of the bonds, the County debited restricted cash and credited bonds payable.What additional entry, if any, would be needed?

A) No additional entry would be needed at this time.
B) Debit Restricted net assets $.5 million; Unrestricted net assets $.5 million.
C) Debit Unrestricted net assets $.5 millions; Credit Restricted net assets $.5 million.
D) Debit Unrestricted retained earnings $.5 million; Credit Restricted retained earnings $.5 million.