A purchase order for $5,000 is recorded in the general fund for the purchase of new equipment. The equipment is received at an actual cost of $5,150. Which of the following statements is correct? Select one: a. Equipment is increased in the general fund by $5,150. b. An expenditure is increased by $5,150. c. An encumbrance account is reduced by $5,150. d. An expenditure is recorded for the additional $150.