1. A water utility issued $20,000,000 of revenue bonds in 2021. The bonds pay interest in March and September, and, starting in September, 2022, $1,000,000 of bond principal will mature and be paid. Which of the following statements is correct on the December 31, 2021, statement of net position for the water utility?

1. Interest payable will be reported under current liabilities for the amount accrued since the September interest payment.
2. $19,000,000 of bonds payable will be reported under long-term debt.
3. A and B.
4. Neither A nor B.