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The City of T repaid its tax anticipation note of $100,000 after tax collections. The amount of interest charged is $5,000. What is the journal
The City of T repaid its tax anticipation note of $100,000 after tax collections. The amount of interest charged is $5,000. What is the journal entry to record the repayment?
a | Debit: Tax Anticipation Notes Payable $100,000 Debit: Expenditures Control $5,000 Credit: Cash $105,000 | |
b | Debit: Expenditures Control $105,000 Credit: Cash $105,000 | |
c | Debit: Expenditures Control $5,000 Credit: Cash $5,000 | |
d | Debit:Tax Anticipation Notes Payable $105,000 Credit: Cash $105,000 |
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