The Town of Tonawanda Has $21,000 of Purchase Orders Outstanding $\begin{array}{lccc} \text { Encumbrances Control(2008) } &21,000 \\ \text { Reserve for Encumbrances (2008) } & &21,000\end{array}$

The Town of Tonawanda has $21,000 of purchase orders outstanding at the end of 2008 which will be honored. The goods and supplies were received early in January, 2009. The invoice amounted to $19,300 What is the journal entry necessary to re-establish the encumbrance?
A.
$\begin{array}{lccc} \text { Encumbrances Control(2008) } &21,000 \\ \text { Reserve for Encumbrances (2008) } & &21,000\end{array}$
B.
$\begin{array}{lccc} \text { Reserve for Encumbrances (2008) } &21,000 \\ \text { Fund Balance - Unreserved } & &21,000\end{array}$
C.
$\begin{array}{lccc} \text { Encumbrances Control (2008) } &21,000 \\ \text { Fund Balance - Unreserved } & &21,000\end{array}$
D.
$\begin{array}{lccc} \text { Reserve for Encumbrances } &21,000 \\ \text { Encumbrances Control (2008) } & &21,000\\\text { Expenditures Control (2008) } &19,300 \\ \text {Accounts payable } & &19,300\\\end{array}$

A) Choice A
B) Choice B
C) Choice C
D) Choice D