A government paid $3,500,000 to its fiscal agent on June 30, 20X6, to provide for principal ($2,000,000) and interest payments due on July 1, 20X6. The fiscal agent will make payments to bondholders on July 1. The payment to the fiscal agent does not constitute legal or in-substance defeasance of the principal and interest payments. If the government uses the option of accruing its principal and interest expenditures due early in the next year, which of the following assets and liabilities should be reported in the government’s DSF balance sheet at June 30, 20X6?

a. No assets or liabilities from the preceding information would be reported because the government has paid the fiscal agent.

b. Cash with fiscal agent, $3,500,000.

c. Cash with fiscal agent, $3,500,000.
Matured bonds payable, $2,000,000.
Matured interest payable, $1,500,000.

d. Cash with fiscal agent, $3,500,000.
Accrued interest payable, $1,500,000.