4. In connection with Thurman Township’s long-term debt, the following cash accumulations are available to cover payment of principal and interest on:

Bonds for financing of water treatment plant construction

$1,000,000 General long-term obligations 400,000 The amount of these cash accumulations that should be accounted for in Thurman’s debt service funds is:

a $0 b $400,000 c $1,000,000 d $1,400,000 Use the following information in answering questions 5 and 6:

On December 31, 2016, Cane City paid a contractor $3,000,000 for the total cost of a new municipal annex built in 2016 on city-owned land. Financing was provided by a $2,000,000 general obligation bond issue sold at face amount on December 31, 2016, with the remaining $1,000,000 transferred from the general fund.