A state government is responsible for funding a city's teacher pension retirement system. During the current year, the city's school district is the beneficiary of a $750,000 state payment made on behalf of the city. What journal entry(ies) should the city record in a governmental fund?
Question 9 options:
a)
Debit Pension Expenditure $750,000; Credit Pension Revenue $750,000
b)
Debit Pension Expenditure $750,000; Credit Pension Payable $750,000
AND
Debit Pension Payable $750,000; Credit Cash $750,000
c)
Debit Cash $750,000; Credit Pension Revenue $750,000
AND
Debit Pension Expenditure $750,000; Credit Cash $750,000
d)
Debit Cash $750,000; Credit Pension Payable $750,000
AND
Debit Pension Expenditure $750,000; Credit Pension Revenue $750,000
e)
No journal entry is required.