A Government Issued $4 Million of General Obligation Bonds on November

A government issued $4 million of general obligation bonds on November 1, 2019, to build a fire house. The first debt service payment ($200,000 principal plus 6 percent interest per annum on outstanding debt) is due November 1, 2020. To prepare government-wide financial statements at December 31, 2019, what journal entry is needed regarding debt service?
a. No journal entry is needed
b.
$\begin{array}{lr}\text { Interest expense } & 40,000 \\\quad \text { Interest payable } &&40,000 \\\end{array}$

c.
$\begin{array}{lr}\text { Interest expense } & 40,000 \\\text { Bond principal expense } & 33,333 \\\quad \text { Debt service payable } &&73,333 \\\end{array}$

d.
$\begin{array}{lr}\text { Interest expense } & 240,000 \\\quad \text { Interest payable } & & 240,000\end{array}$