How should the bonds be reported in the reconciliation schedule for the statement of revenues, expenditures, and changes in fund balance?

a. A decrease of $500,000 for the par value of the bonds.

b. A decrease of $30,000 for the interest paid on the bonds.

c. A decrease of $510,000 for the selling price of the bonds.

d. Not shown in this reconciliation schedule.

At the beginning of the year, the City of Vero Beach sold bonds in its capital projects fund. The 6 percent, $500,000 par bonds were sold for 102. The effective

interest rate was 5 percent.