On January 1, 2020, a City Had Outstanding General Obligation

On January 1, 2020, a city had outstanding general obligation bonds payable of $900,000. During 2020, the city used a Debt Service Fund to repay $100,000 of bonds that were outstanding at the start of the year. Based on the fund preclosing trial balances, what adjustments must the city make to prepare the government-wide financial statements on December 31, 2020?
a. No adjusting entry is needed
b.
$\begin{array}{lll}\text { Net position } & 900,000 \\\quad \text { Bonds payable } &&90,000 \\\text { Bonds payable } & 100,000 \\\quad \text { Expenditures-bond principal } & &100,000\\\end{array}$

c.
$\begin{array}{lll}\text { Net position }&800,000 \\\quad \text { Bonds payable }&& 800,000 \\\end{array}$

d.
$\begin{array}{lll}\text { Other financing source-proceeds from bond issue } &800,000 \\\text { Bonds pavable }&&800,000\end{array}$