Answer:
A. $1,460,000
B. General Fund:
Dr Cash $1,460,000
Cr Tax Anticipation Notes Payable $1,460,000
Governmental Activities:
Dr Cash $1,460,000
Cr Tax Anticipation Note Payable $1,460,000
C. General Fund:
Dr Tax Anticipation Note Payable $1,460,000
Dr Expenditures $43,800
Cr Cash $1,503,800
Governmental Activities:
Dr. Tax Anticipation Note Payable $1,460,000
Dr Expenses-General Government $43,800
Cr Cash $1,503,800
Explanation:
A. Calculatation for the estimated amount of tax anticipation financing
Estimated Expenditures Requirements:
Budgeted Expenditure, remainder $2,500,000
Add Current Liabilities Payable $830,000
Total $3,330,000
Estimated Resources Available:
Cash on hand $770,000
Add Collection of budgeted revenues and delinquent property taxes $1,100,000
Total $1,870,000
Estimated Anticipation Note Financing $1,460,000
($3,330,000-$1,870,000)
Therefore the Estimated Anticipation Note Financing is $1,460,000
B. Preparation of the journal entry to record the issuance of the tax anticipation notes in the general journals
General Fund:
Dr Cash $1,460,000
Cr Tax Anticipation Notes Payable $1,460,000
( To record the insuance of tax anticipation note payable)
Governmental Activities:
Dr Cash $1,460,000
Cr Tax Anticipation Note Payable $1,460,000
C. Preparation of the general journals of the General Fund and governmental activities
General Fund:
Dr Tax Anticipation Note Payable $1,460,000
Dr Expenditures $43,800
(1,460,000*6%*6/12)
Cr Cash $1,503,800
(1,460,000+43,800)
Governmental Activities:
Dr. Tax Anticipation Note Payable $1,460,000
Dr Expenses-General Government $43,800
(1,460,000*6%*6/12)
Cr Cash $1,503,800
(1,460,000+43,800)
(Being the payment for tax and interest)
