3. Lisa County issued $5,000,000 of general obligation bonds at 101 to finance a capital project. The $50,000 premium was to be used for payment of interest. The transactions involving the premium...

3. Lisa County issued $5,000,000 of general obligation bonds at 101 to finance a capital project. The $50,000 premium was to be used for payment of interest. The transactions involving the premium should be accounted for in the

a. capital projects funds, the debt service funds, and the general long-term debt account group.

b. capital projects funds and debt service funds only.

c. debt service funds and the general long-term debt account group only.

d. debt service funds only.