Use the information below to answer the next four questions:

Bart Township issued the following bonds during the year: Ten-year bonds to purchase equipment for a data processing service reported in an Internal Service Fund $2,500,000 Bonds to construct a new fire station $10,000,000 Bonds to finance increasing the capacity of the water treatment plant reported in an Enterprise Fund $4,900,000

a. The cash from the bonds issued to construct the new fire station should be reported as:

1. Debt proceeds in the general fund
2. Long-term debt in a debt service fund
3. Debt proceeds in a capital projects fund
4. None of the above

b. The amount of debt reported in Barts General Fund is:

1. $0
2. $7,400,000
3. $10,000,000
4. $17,400,000

c. In which fund should the Township report depreciation expense on the new capital assets that it purchased?

1. General fund
2. Enterprise fund
3. Enterprise and internal service funds
4. Capital projects fund

d. The bonds issued to finance the construction of the new fire station contain a bond covenant requiring the township to set aside $1,500,000 to help ensure that it is able to meet its first payment of principal and interest on the debt. The first payment is due one year from the date the bonds were issued. The amount of liability that the township should report in its debt service fund is:

1. $0
2. $1,500,000
3. $9,000,000
4. $8,000,000