A construction contract was issued for an addition to the county jail in the amount of $2,300,000. When the project was approximately half finished, the contractor submitted an invoice for payment of $1,150,000. Which partial entry below is not required to record this transaction?

Question

Quizplus · Accepted Answer

The journal entry would be a debit to Expenditures - Capital Outlay and credit to Contracts Payable for $1,150,000. Then a debit to Budgetary Fund Balance - Reserve for Encumbrances and credit to Encumbrances Control for $1,150,000.

A Construction Contract Was Issued for an Addition to the County