The Town of Conway Opened a Solid Waste Landfill in 1995

Short Answer

The Town of Conway opened a solid waste landfill in 1995 that is filled to capacity in the current year.The city initially anticipated closure costs of $2 million.These costs were not expected to be incurred until the landfill was 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?
A) $\begin{array}{lcc} & \text { Expense -Landfill Closure } & 2,000,000 & \\ & \text { Landfill Closure Liability } & & 2,000,000 \\\end{array}$


B) $\begin{array}{lcc}& \text { Landfill Closure Liability } & 2,000,000 & \\& \text { Expense - Landfill Closure } & & 2,000,000 \\\end{array}$


C) $\begin{array}{lcc} & \text { Expense -Landfill Closure } & 2,000,000 & \\ & \text { Cash } & & 2,000,000 \\\end{array}$


D) $\begin{array}{lcc}& \text { Landfill Closure Liability } & 2,000,000 & \\ & \text { Cash } & & 2,000,000 \\\end{array}$


E) $\begin{array}{lcc} & \text { Expenditure- Landfill Closure } & 2,000,000 & \\ & \text { Cash } & & 2,000,000 \\\end{array}$