On July 1, the first day of its fiscal year, the Town of Carefree levied a $1,000,000 in property taxes, payable in full on December 1 of the same year. On September 15, the town 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 Other Financing Sources—Proceeds of Tax Anticipation Notes.

B. A credit to Tax Anticipation Revenue.

C. A credit to Tax Anticipation Notes Payable.

D. A credit to Deferred Outflows of Resources—Tax Anticipation Notes.

Answer rating: 100% (QA)

The journal entry to record the issuance of the tax anticipation no... View the full answer