ABC Construction receives an annual appropriation to perform construction activities. ABC does not use commitment accounting; instead, it obligates funds upon the award of contracts. Prepare budgetary and proprietary journal entries to record the following transactions.(1.5 Marks)

a.ABC received an appropriation of $3,000,000.

b.The Office of Management and Budget apportioned $750,000 of the appropriation to the Department of Domestic Construction, which oversees the ABC.

c.The Department allotted the entire $750,000 apportionment to the ABC.

d.ABC awarded a building construction contract for $450,000.

e.The contractor completed construction of the building. Because of a change order, however, the total cost of the work was $486,000. ABC accepted the work and recorded the asset and the invoice for $486,000.