Question
The Village of Walton borrowed $500,000 for a period of six months using a tax anticipation note on November 1, 2022. The Village is
The Village of Walton borrowed $500,000 for a period of six months using a tax anticipation note on November 1, 2022. The Village is charged interest on the borrowing at annual rate of 6 percent. The Village's fiscal year-end is September 30, 2023 What journal entry should be made in the Village's General Fund when the Village repays the loan with interest on April 30, 2023? 0 Tax anticipation notes payable 500,000 Expenditures-interest 30,000 Cash 530,000 O Tax anticipation notes payable 500,000 Expenditures-interest 15,000 Cash 515,000 O Expenditures-notes principal 500,000 Expenditures-interest 30,000 Cash 530,000 0 Expenditures--notes principal 500,000 Expenditures-interest 15,000 Cash 515.000
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