Multiple Choice
During the previous year, Bane County closed its Encumbrances account.At the end of the previous year there were $5,000 in outstanding purchase commitments.To restore these commitments to the accounts, which of the following entries would be required?
A) Debit Reserve for encumbrances $5,000; Credit Encumbrances $5,000.
B) Debit Encumbrances $5,000; Credit Reserve for encumbrances $5,000.
C) Debit Encumbrances $5,000; Credit Fund balance $5,000
D) Debit Fund balance $5,000; Credit Reserve for encumbrances $5,000.
Correct Answer:
Verified
Correct Answer:
Verified
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