The Town of Conway Opened a Solid Waste Landfill in 2001

Multiple Choice

The Town of Conway opened a solid waste landfill in 2001 that is now filled to capacity. The city initially anticipated closure costs of $2 million. These costs were not expected to be incurred until the landfill is closed. What is the final journal entry to record these costs assuming the estimated $2 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund? $\begin{array}{|l|l|r|r|}\hline \text { A) } & \text { Expense-Landfill Closure } & 2,000,000 & \\\hline & \text { Landfill Closure Liability } & & 2,000,000 \\\hline \text { B) } & \text { Landfill Closure Liability } & 2,000,000 & \\\hline & \text { Expense-Landfill Closure } & & 2,000,000 \\\hline \text { C) } & \text { Expense-Landfill Closure } & 2,000,000 & \\\hline & \text { Cash } & & 2,000,000 \\\hline \text { D) } & \text { Landfill Closure Liability } & 2,000,000 & \\\hline & \text { Cash } & & 2,000,000 \\\hline \text { E) } & \text { Expenditure- Landfill Closure } & 2,000,000 & \\\hline & \text { Cash } & & 2,000,000 \\\hline\end{array}$

A) Option A
B) Option B
C) Option C
D) Option D
E) Option E