The City of Hiawatha issued $10 million of term bonds as of April 1, 2008. The bonds bear interest at 6%, due and payable each October 1 and April 1. Assuming the City maintains its books and records in a manner that facilitates the preparation of its fund financial statements the appropriate entity to record interest on the debt at June 30, 2011 the City s fiscal year-end is

a. Debit Expenditures $300,000; Credit Interest payable $300,000.

b. Debit Expenditures $300,000; Credit Other financing uses $300,000.

c. Debit Expenditures $300,000; Credit Due to bondholders $300,000.

d. No entry required

Why is the answer d