The City of Oxford, Mississippi (population just under 24,000) passed a bond issue for $2,500,000, 4.5 percent, semiannual interest, 10 year bonds to finance the construction of a second high school to be called Yoknapatawpha High, named in memory of the Pulitzer Prize winning author, William Faulkner. The State also contributed $110,000 for construction of the gymnasium. The contractor selected then submitted her contract for $2,080,000 to commence on January 2, 2019, with the projects estimated completion in late 2019.

1. The money from the State of Mississippi of $110,000 was received by the City of Oxfords General Fund. The monies were then transferred from the General Fund to the Capital Project Fund. The entry in the General Fund receiving the grant money from the state would include a:

A. Credit to Program RevenuesPublic EducationCapital Grants and Contributions, $110,000.

B. Credit to Revenues, $110,000.

C. Debit to Other Financing UsesTransfers-out, $110,000.

D. Credit to Other Financing UsesTransfers-in, $110,000.