The City of Olburg failed to record invoiced expenditures for the last year of $15,000 that were not encumbered. Of this amount, $10,000 was paid this year debited to Expenditures (Control). The unpaid portion has not been vouchered. The entry to record this event would include a

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The City of Olburg failed to record invoiced expenditures for the last year of $15,000 that were not encumbered. As a result, the amount should be considered an expenditure for the previous year and debited to Fund Balance--Unreserved and Undesignated. The entry would be a $15,000 debit to Fund Balance--Unreserved and Undesignated. Since $10,000 was paid this year, it will be credited to the Expenditures (Control) account, leaving a remaining $5,000 that has not been vouchered. Therefore, option B is the best choice. Option A is incorrect because the expenditure was incurred in the previous year and should be debited to Fund Balance--Unreserved and Undesignated. Option C is incorrect because only $5,000 remains unpaid, not the entire amount. Option D is incorrect because the $10,000 that was paid this year was debited to Expenditures (Control), not credited to Fund Balance--Unreserved and Undesignated.

The City of Olburg Failed to Record Invoiced Expenditures for the Last