In the Debt Service Fund, What Is the Appropriate Entry

In the debt service fund, what is the appropriate entry when the principal payment is made?

A) Debit Bonds Payable; Credit Cash.
B) Debit Expenditures; Credit Cash.
C) Debit Other Financing Uses-Nonreciprocal Transfer; Credit Cash.
D) No entry is required.
Use the following information to answer questions #21 and #22.
The citizens of a specific area of the City of Arlington approved the construction of sidewalks in their residential neighborhood and approved a $1 million bond issue to finance construction of those sidewalks.The citizens agreed to tax themselves for 20 years in an amount sufficient to pay principal and interest on the bonds.The City will oversee the construction of the sidewalks and act as agent for servicing the debt.The City does not guarantee the debt nor does it assume any legal or moral obligation for the bonds.