On July 1, the First Day of Its Fiscal Year

question 11

Multiple Choice

On July 1, the first day of its fiscal year, the Town of Eldon levied a $1,000,000 property tax which is 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.

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Definitions:

Nucleoside

A compound consisting of a nitrogenous base bound to a sugar molecule, forming the basic building blocks of nucleic acids without the phosphate group.

Sucrose

A sugar molecule consisting of glucose and fructose, widely recognized as sugar used on dining tables.

Sweetener

A substance used to provide sweetness to foods or beverages, often with fewer calories compared to regular sugar, including natural and artificial types.

Ribonucleosides

Compounds consisting of a nucleoside attached to a ribose sugar, which are basic building blocks of RNA.