E$18-2$ Multiple$-$Choice Items on Governmental Funds $[$AICPA Adapted$]$

Select the correct answer for each of the following.

On December $31,20$X$1,$ Tiffin Township paid a contractor $$2,000,000$ for the total cost of a new firehouse built in $20$ X $1$ on township$-$owned land. Financing was by means of a $$1,500,000$ general obligation bond issue sold at face amount on December $31,20$X$1,$ with the remaining $$500,000$ transferred from the general fund. What should be reported on Tiffin's financial statements for the capital projects fund?

a$.$ Revenue, $$1,500,000$; Expenditures, $$1,500,000.$

b$.$ Revenue, $$1,500,000$; Other Financing Sources, $$500,000$; Expenditures, $$2,000,000.$

c$.$ Revenue, $$2,000,000$; Expenditures, $$2,000,000.$

d$.$ Other Financing Sources, $$2,000,000$; Expenditures, $$2,000,000.$