Multiple Choice
During the previous year, Bane County closed its Encumbrances account.At the end of the previous year there was $5,000 of 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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