Question

The town of Conway opened a solid waste landfill several years ago that is now filled to capacity. The city initially anticipated closure costs of $2 million. These costs were not expected to be incurred until the landfill is closed. What is the final journal entry to record these costs assuming the estimated $2 million closure costs were properly recorded and the landfill is accounted for in an enterprise fund?
A)

Expense—Landfill Closure

2,000,000



Landfill Closure Liability

2,000,000

B)

Landfill Closure Liability

2,000,000

Expense—Landfill Closure

2,000,000

C)

Expense—Landfill Closure

2,000,000

Cash

2,000,000

D)

Landfill Closure Liability

2,000,000

Cash

2,000,000

E)

Expenditure- Landfill Closure

2,000,000

Cash

2,000,000

Entry A.

Entry B.

Entry C.

Entry D.

Entry E.

Answer 1

Answer:

Option D

Landfill Closure Liability  2,000,000

Cash  2 ,000,000

Explanation:

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

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