A contractor sends a progress billing to a city requesting payment of $4,000,000 for work done on a new fire station for the city. The city approves the payment less a

10 percent retainage but has not yet written a check to the contractor.

What journal entry should be made in the city's Capital Projects Fund?

1. Expenditures--construction costs

4,000,000

Retainage payable 400,000

Construction contracts payable 3,600,000

2. Expenditures--construction costs

4,000,000

Construction contracts payable

4,000,000

3. Capital assets--fire station

4,000,000

Retainage payable 400,000

Construction contracts payable

3,600,000

4. Expenditures--construction costs

3,600,000

Construction contracts payable

3,600,000

A contractor sends a progress billing to a city requesting payment of $4,000,000 for work done on a new fire station for the city. The city approves the paymentessa 10 percent retainage but has not yet written a check to the contractor What journal entry should be made in the city's Capital Projects Fund? O Expenditures--construction costs 4,000,000 Retainage payable 400,000 Construction contracts payable 3,600,000 Expenditures construction costs 4,000,000 Construction contracts payable 4,000,000 Capital assets-fire station 4,000,000 Retainage payable 400,000 Construction contracts payable 3.600.000 Expenditures construction costs 3,600.000 Construction contracts payable 3,600,000