A city borrows $800,000 in January because it does not receive property taxes until May. It borrows on a tax anticipation note,
which it will repay in May when taxes are collected. How would the city classify the note if it were to prepare governmental-type fund financial statements on March 31?
<span>Liability is on Darby because they were the one to write the original check and give it to the education loan management inc. Since the check wasn't accepted they have to take responsibility and liability for the fact that it was not accepted.</span>
