The town of Conway opened a solid waste landfill several years ago that is now f
ID: 2481912 • Letter: T
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.
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
Explanation / Answer
ANswer
Entry D
D)
Landfill Closure Liability
2,000,000
Cash
2,000,000
D)
Landfill Closure Liability
2,000,000
Cash
2,000,000
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