The Voters in Ohio City Approved the Construction of a New

The voters in Ohio City approved the construction of a new city hall building and approved a $10 million bond issue with a stated rate of interest of 6 percent to fund the construction. When the bonds were issued, they sold for 99. Assuming that the city has agreed to transfer money from its general fund to make up the difference, what are appropriate entries related to the discount?
-In the debt service fund

A) Debit Cash $100.000; Credit Revenues $100,000; no other entries required.
B) Debit Cash $100,000; Credit Other financing sources-nonreciprocal transfer-in $100,000; No other entries required.
C) Debit Other financing sources-nonreciprocal transfer-out $100,000; credit Cash $100,000.
D) No entry in the debt service fund.