On October $1,2023,$ the City of Mizner issued $$6,000,000$ in $4\%,$ general obligation bonds at $101$ for the purpose of constructing an addition to City Hall. The premium was transferred to a debt service fund. A total of $$5,968,750$ was used to construct the addition, which was completed prior to June $30,2024.$ The remaining funds were transferred to the debt service fund. The bonds were dated October $1,2023,$ and paid interest on April $1$ and October $1.$ The first of $20$ annual principal payments of $$250,000$ is due October $1,2024.$ The fiscal year for Mizner is July $1-$ June $30.$

In addition to a $$6,000,000$ liability in the government$-$wide Statement of Net Position, how would the bond sale be reported?

Question $4$ options:

As a $$6,000,000$ revenue in the capital projects fund, a $$60,000$ revenue in the debt service fund, and a $$6,000,000$ expenditure in the debt service fund.

As a $$6,000,000$ other financing source in the capital projects fund, a $$60,000$ other financing source in the debt service fund, and as a $$6,000,000$ liability in the debt service fund.

As a $$6,060,000$ other financing source in the capital projects fund, a $$60,000$ other financing use in the capital projects fund, and a $$60,000$ other financing source in the debt service fund.

As a $$5,968,750$ revenue in the capital projects fund and a $$60,000$ revenue in the debt service fund.