Dale City is accumulating financial resources that are legally restricted to payments of general long-term debt principal and interest maturing in future years. At December 31, 2005, $5,000,000 has been accumulated for principal payments and $300,000 has been accumulated for interest payments. These restricted funds should be accounted for in the

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Debt service fund

General fund

a.

$0

$5,300,000

b.

$ 300,000

$5,000,000

c.

$5,000,000

$ 300,000

d.

$5,300,000

$0