January 1, 2019, A contract with a 6 percent retainage clause was sig ned with Arab Construction Company to construct a new dly Kall F8 $4,000,000. March 15, The contractor submitted a progress billing of $3,000,000; the billing (less a 6 percent retainage) was approved. The entr that should be recorded in March 15 is O a. Debit, Budgetary Fund Reserved for Encumbrances $3,000,000; Cr dit, Encumbrances $3,000,000 O b. Debit, Encumbrances $3,000,000; Credit, Budgetary Fund Reserver for Encumbrances $3,000,000. O. Debit, Encumbrances $4,000,000; Credit, Budgetary Fund Reserver for Encumbrances $4,000,000. O d. Debit, Expenditures-Construction Cost $3,000,000; Credit, Vouche Payable $3,000,000,

January 1, 2019, A contract with a 6 percent retainage clause was sig ned with Arab Construction Company to construct a new dly Kall F8 $4,000,000. March 15, The contractor submitted a progress billing of $3,000,000; the billing (less a 6 percent retainage) was approved. The entr that should be recorded in March 15 is O a. Debit, Budgetary Fund Reserved for Encumbrances $3,000,000; Cr dit, Encumbrances $3,000,000 O b. Debit, Encumbrances $3,000,000; Credit, Budgetary Fund Reserver for Encumbrances $3,000,000. O. Debit, Encumbrances $4,000,000; Credit, Budgetary Fund Reserver for Encumbrances $4,000,000. O d. Debit, Expenditures-Construction Cost $3,000,000; Credit, Vouche Payable $3,000,000,

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter17: Advanced Issues In Revenue Recognition

Section: Chapter Questions

Problem 6P

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