A construction contract was issued for an addition to the county jail in the amount of $2,100,000.When the project was approximately half finished,the contractor submitted an invoice for payment of $1,050,000.Which partial entry below is not required to record this transaction?

Question

Quizplus · Accepted Answer

Option C is not required because encumbrances control is used to record the commitment of funds for a specific project, and it is typically done at the beginning of the project. Once the contractor submits an invoice for a partial payment, the encumbrance amount does not need to be adjusted. Options A, B, and D are all necessary for recording the transaction correctly.

A Construction Contract Was Issued for an Addition to the County