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

Question

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

Quizplus · Accepted Answer

Previously Accrued Closure Liability Balance of $2,000,000 is satisfied by $2,000,000 Cash Payment at Closure of Facility.

The Town of Conway Opened a Solid Waste Landfill in 2001