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  3. a city issues $20 ?million of general obligation b

A city issues $20 ?million of general obligation bonds to improve its streets and roads....

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Accounting

A city issues $20 ?million of general obligation bonds to improve its streets and roads. In accordance with the bond covenants, it committed $1 ?million to help ensure that it is able to meet its first payment of principal and $100,000 ?for its first payment of interest, neither of which is yet due. The amount of liability that the city should report in its debt service fund is
a. ?$0
b. ?$18.9 ?million
c. ?$19 ?million
d. ?$20 ?million
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