Issuance of tax anticipation notes

Assignment Help Accounting Basics
Reference no: EM13132196

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: EM13132196

Questions Cloud

Computing effective charges on i and br : Calculating effective charges on I and Br, The iodine monobromide molecule, IBr, has a bond length of 2.49 Angstroms and a dipole moment of 1.21 D.
Encumbrances account at the end of the fiscal year : Which of the following journal entries should be made to close the Encumbrances account at the end of the fiscal year?
What is the final concentration of na+ : What is the final concentration of Na+ if 250 ml of 0.3 M Na Cl is added to 750 ml of 0.125 M Na2SO4?
Which molecular species would be necessary for the formation : Which molecular species would be necessary for the formation of the product in the reaction; a primary carbocation, a tertiary carbocation, a primary carbanion, a secondary carbanion or SO4?
Issuance of tax anticipation notes : 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..
Electron donor and receptor in metal complexes : Electron Donor and Receptor in Metal Complexes, In the first step of the catalytic cycle, the alkene bonds to palladium to make a new metal complex The alkene is now a ligand because the pi-bond of the alkene is donating some of its electrons to p..
What was the companys revenue for the year : paid dividends of $80,000. If Kilmer’s ending retained earnings was $330,000, what was the company’s revenue for the year?
What price would have been charged to the customer if job : What price would have been charged to the customer if the job required $3,3000 in materials and $4,5000 in direct labor cost, and the company priced its jobs at 20% above the job’s cost according to the accounting system?
Finite mathematics-annuities : When she is 30, Sue starts making annual deposits of $2,000 into a bondfund that pays 8% annual interest compounded continuously. Assuming that her deposits are made as a contiuous income flow, how much money will be in her account if she retires ..

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Prepare a statement of cash flows

Prepare a statement of cash flows using the direct method. (Do not prepare a reconciliation schedule.)

  Gain or loss-basis in new property

Determine Debbie's and Elizabeth's realized gain or loss, recognized gain or loss, and the basis in their new property.

  Evaluate the opportunity costs for damien chrysler

evaluate the opportunity costs for Damien Chrysler for failure to accept a proposal from within to manufacture a vehicle for the Indian market and suggest ways that opportunity cost can be minimized.

  Benefit of budgeting

Which of the following is not a benefit of budgeting?

  Importance of food cost labor and sales

Describe the importance of food cost, labor and sales in a food and beverage operation. Support your description with concepts addressed in the materials provided in this course.

  What is ems break-even sales volume

EM Sales had $2,200,000 in sales last month. The contribution margin ratio was 30% and operating profits were $180,000. What is EM's break-even sales volume? $660,000 $1,540,000 $1,600,000 $2,020,000.

  Discuss the potential risks of adopting lean production

Discuss the potential risks of adopting lean production. Does its application depend on company culture and business condition?

  Determining year-end balance

Damons uses the allowance method to account for uncollectible receivables. At the beginning of the year, allowance for doubtful accounts had a debit balance of $100. During the year you recorded bad debt expense of $1,800 and wrote off bad receiva..

  Fasb codification-inventory research

What is the formal definition in the glossary of the term "Inventory?" What is the Codification topic number for inventory? What types of entities are not covered by the guidance in the Inventory Topic? (Provide the Codification reference for your ..

  What entries would be made to record income tax expenses

Htech Corp. started its operation in 2010 and has a $550,000 net operating loss when the tax rate is 35%. In 2011, the company has $680,000 taxable income and the tax rate is revised to 40% in early 2011.

  Goal of achieving zero defects

Some companies implement systems to reduce defects in finished products with the goal of achieving zero defects. What are these systems called?

  Cash collections from accounts receivable

The company expects to sell 20% of its merchandise for cash. Of sales on account, 70% are expected to be collected in the month of the sale, 25% in the month following the sale, and the remainder in the following month. The cash collections in Sep..

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