A Contractor Sends a Progress Billing to a City Requesting

A contractor sends a progress billing to a city requesting payment of $4,000,000 for work done on a new fire station for the city. The city approves the payment less a 10 percent retainage but has not yet written a check to the contractor. What journal entry should be made in the city's Capital Projects Fund?
a.
$\begin{array}{lrr}\text { Expenditures-construction costs } & 4,000,000 \\\quad \text { Construction contracts payable } && 4,000,000 \\\end{array}$

b.
$\begin{array}{lrr}\text { Expenditures-construction costs } & 4,000,000 \\\quad \text { Retainage payable } &&400,000 \\\quad \text { Construction contracts payable } &&3,600,000 \\\end{array}$

c.
$\begin{array}{lrr}\text { Capital assets-fire station } &4,000,000 \\\quad \text { Retainage payable } &&400,000 \\\quad \text { Construction contracts payable } && 3,600,000 \\\end{array}$

d.
$\begin{array}{lrr}\text { Expenditures-construction costs } &3,600,000 \\\quad \text { Construction contracts payable } &&3,600,000\end{array}$