. Which of the following entry is correct to record the following transaction based on the preparation of fund financial statements?

The City of Richmond pays a bond payable of $40,000 along with $10,000 of interest using the money previously set aside.

1. General Fund

Bond Payable 40,000

Interest Expense 10,000

Cash 50,000

2. Debt Service Fund

Expenditure--Principal 40,000

ExpenditureInterest 10,000

Cash 50,000

3. General Fund

Expenditure--Principal 40,000

ExpenditureInterest 10,000

Cash 50,000

4. Debt Service Fund

Bond Payable 40,000

Interest Expense 10,000

Cash 50,000