On July 1, the First Day of Its Fiscal Year

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.