Solved

During the Previous Year, Bane County Closed Its Encumbrances Account

Question 35

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:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents