A construction contract was issued for the addition of a local county jail in the amount of $2,100,000.When the project was almost half finished,the contractor submitted a billing 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 as it only records the initial encumbrance amount for the contract. The billing for payment should be recorded in the accounts payable (Contracts Payable) and the construction expenses (Construction Expenditures) accounts. Option D might be required if the encumbrance needs to be adjusted to reflect the remaining balance of the contract.

A Construction Contract Was Issued for the Addition of a Local