On December 31, 20X1, Tiffin Township paid a contractor $2,000,000 for the total cost of a new firehouse built in 20X1 on township-owned land. Financing was

by means of a $1,500,000 general obligation bond issue sold at face amount on December 31, 20X1, with the remaining $500,000 transferred from the general

fund. What should be reported on Tiffin’s financial statements for the capital projects fund?

a. Revenue, $1,500,000; Expenditures, $1,500,000.

b. Revenue, $1,500,000; Other Financing Sources, $500,000; Expenditures, $2,000,000.

c. Revenue, $2,000,000; Expenditures, $2,000,000.

d. Other Financing Sources, $2,000,000; Expenditures, $2,000,000.