Cougar City issued $2 million in general obligation bonds to acquire a fleet of vehicles for the Central Motor Pool Internal Service Fund. At the date of issue, the appropriate entry in the internal service fund is a $ 2 million debit to cash and a $2 million credit to
A) Bonds payable.
B) Capital contribution (revenues) .
C) Capital contributed (revenues) AND show $2 million as an addition to the schedule of changes in long-term obligations.
D) No entry in the internal service fund. Show $2 million as an addition to the schedule of changes in long-term obligations.
Correct Answer:
Verified
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