Issuance of tax anticipation

Assignment Help Accounting Basics
Reference no: EM13131478

On July 1, the first day of its fiscal year, the Ovid City levied a $1,000,000 property tax which is payable in full on December 1 of the same year. On September 15, the City decided to borrow $200,000 in 90 day tax anticipation notes to cover operating expenditures until the tax revenues are collected. The journal entry on September 15 to record the issuance of tax anticipation notes will include:

A) A credit to Proceeds of Tax Anticipation Notes.

B) A credit to Tax Anticipation Notes Payable.

C) A credit to Tax Anticipation Revenue.

D) Either B or C is acceptable if consistently applied.

Reference no: EM13131478

Questions Cloud

How many grams of na2so4 needs to be added : A reagent bottle is labeled 0.388M Na2SO4. assuming no volume change, how many grams of Na2SO4 (MM=142.05g/mol) needs to be added to 1.50L solution to obtain 0.750M solution of Na2SO4?
What is margie gross estate for federal estate tax : Margie died on October 3, 2011. Her will directed that upon her death, all of her assets be transferred outright to her husband, Michael. The following are all of the assets that were owned by Margie on October 3, 2011.
Ordering deck of cards using factorials : How many ways can we order a deck of 52 cards so that all the heats are together, all the clubs are together, all the diamonds are together and all the spades are together?
Fund balance of a governmental fund : Which of the following will require a credit to Fund Balance of a governmental fund when closing entries are prepared?
Issuance of tax anticipation : On September 15, the City decided to borrow $200,000 in 90 day tax anticipation notes to cover operating expenditures until the tax revenues are collected. The journal entry on September 15 to record the issuance of tax anticipation notes will inc..
What is amount of those investments that are maturing : How does BA account for “other current interest-bearing deposits”? Is that consistent with U.S. GAAP? What is amount of those investments that are maturing after three months, as of March 31, 2009?
How much co2 will dissolve : At a pressure of 1.00 atm and a temperature of 20ºC, 1.72 g CO2 will dissolve in 1 L of water. How much CO2 will dissolve if the pressure is raised to 1.35 atm and the temperature stays the same?
How much did this subscription originally cost : This is the remaining balance of a twelve-month subscription purchased on September 30 in the current year. How much did this subscription originally cost?
What is the sketched formula for ethyl methyl ester : Is 1-propanol soluble in hexane? Why or why not? What is the sketched formula for ethyl methyl ester and is it an isomer of butanoic acid? If not, what is the isomer of butanoic acid?

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Projects equivalent annual cost

If the required return is 11 percent, what is the project's equivalent annual cost, or EAC? (Do not round your intermediate calculations.)

  How do you value the obsolete inventory

There are several methods, LIFO, FIFO, Weighted Average, Market, and Historical Cost. If you are in the retail/wholesale business, would you use the same method that you would use if you were in the manufacturing business?

  Key factors which impact company decision

Examine the major factors which impact a company’s decision of whether to pay the dividend and determine what you believe is the most significant driver of the decision.

  John-bob at risk for partnership

John-Bob's share of losses from Partnership Z during 2010 was $60,000. How much is John-Bob at risk for Partnership Z on January 1, 2011?

  Specific operational areas

Assume you are opening a small food outlet across the street from your campus. How might that business be operated under each of the two broad strategies? Consider the following specific operational areas:

  What is the income reported by regal

What is the income reported by Regal during 2012 pertaining to the Air investment?

  Describe what audit procedures should be used

You are a senior auditor working on a client who holds a large portfolio of mortgage obligations. Due to the soft housing market, the client has established a fairly significant loan loss reserve.

  Annual per-share dividend

Analyze: what annual per-share dividend was paid to common stockholders in 2010?

  Detailed examination of outstanding accounts

A method of estimating bad debts expense that involves a detailed examination of outstanding accounts and their length of time past due is the:

  Variable costs as a percentage of sales

Variable costs as a percentage of sales for Leamon Inc. are 75%, current sales are $600,000, and fixed costs are $110,000. How much will operating income change if sales increase by $40,000?

  How many payments must you make

You have purchased a car for $6,500, you pay $500 deposit, and then monthly payments are $317.22. The interest rate is 24% per annum, compounded monthly . How many payments must you make?

  How is forward exchange contract reported

On December 31, Year One, the Haynie Company is producing financial statements. How is this forward exchange contract reported?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd