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13 April, 22:08

The Town of Conway opened a solid waste landfill in 1995 that is filled to capacity in the current year. The city initially anticipated closure costs of $2 million. These costs were not expected to be incurred until the landfill was 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

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  1. 13 April, 22:26
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    Answer and Explanation:

    Data provided

    Initially anticipated closure costs = $2,000,000

    The journal entry is shown below:-

    Landfill Closure Liability Dr, $2,000,000

    To Cash $2,000,000

    (Being landfill closure liability is recorded)

    Therefore we debited the landfill closure liability as it decrease the liability and we credited the cash as decreases the assets.
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