15. The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include: A) A credit to Budgetary Fund Balance - Reserve for Encumbrances B) A debit to Budgetary Fund Balance - Reserve for Encumbrances C) A credit to Encumbrance

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16 March, 02:45

15. The journal entry to record the re-establishment of encumbrances that were outstanding at the close of the prior period would include: A) A credit to Budgetary Fund Balance - Reserve for Encumbrances B) A debit to Budgetary Fund Balance - Reserve for Encumbrances C) A credit to Encumbrance

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Jaylin Stark · Answer 1

B) A debit to Budgetary Fund Balance - Reserve for Encumbrances

Explanation:

Reserves for Ecumbrance is the fund which is kept aside for spending required by law or any legal contract. To re-establish the encumbrances a budget fund balance account will be debited to charge it to budget and reserve for Encumbrances ia credited because it is an obligation.