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Business, 05.03.2021 03:20 Beltrand504
Short-term borrowing and investing transactions A local government operates on a calendar-year basis. Prepare journal entries to record the following transactions and events for calendar year 2018. 1. On February 1, 2018, borrowed $400,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2019. 2. To prepare for issuing financial statements for 2018, accrue interest on the TANs through December 31, 2018. 3. Invested $100,000 in a certificate of deposit (CD) on April 1, 2018. The CD, which pays interest of 0.8 percent, will mature on September 30, 2018. 4. The CD matured on September 30, 2018.
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Short-term borrowing and investing transactions A local government operates on a calendar-year basis...
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