When a Purchase Order Is Issued Under a Capital Projects

Multiple Choice

When a purchase order is issued under a Capital Projects fund,how should the transaction be recorded?

A) Debit Encumbrances Control and credit Vouchers payable.
B) Debit Encumbrances Control and credit Budgetary Fund Balance -- Reserve for Encumbrances.
C) Debit Expenditures and credit Vouchers payable.
D) Debit Expenditures and credit Budgetary Fund Balance -- Reserve for Encumbrances.