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venchlu
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Posted: 03 May 2010 at 15:30 | IP Logged  

Grove Township issued $50,000 of bond anticipation notes at face amount and placed the proceeds in its capital project fund. All legal steps were taken to refinance the notes, but Grove was unable to consummate refinancing. In the capital projects fund, which account should be credited to record the $50,000 proceeds?

A. Other financing sourses control.

B. Revenue Control

C. Deferred Revenue

D. Bond anticipation notes payable

I chose A. but the correct answer is D. I have not come across the term Bond anticipation notes payable in Becker or Wiley book .Does anyone have any idea? THX



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cflas08
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Posted: 03 May 2010 at 16:22 | IP Logged  

venchlu wrote:

Grove Township issued $50,000 of bond anticipation notes at face amount and placed the proceeds in its capital project fund. All legal steps were taken to refinance the notes, but Grove was unable to consummate refinancing. In the capital projects fund, which account should be credited to record the $50,000 proceeds?

A. Other financing sourses control.

B. Revenue Control

C. Deferred Revenue

D. Bond anticipation notes payable

I chose A. but the correct answer is D. I have not come across the term Bond anticipation notes payable in Becker or Wiley book .Does anyone have any idea? THX

Why not just Google and find out?????



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venchlu
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Posted: 03 May 2010 at 16:46 | IP Logged  

well, i basic want to know if someone else come across of this term in their study..do u see this term in ur review study? I tried to google it..there is no way i can understand it by myself...

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nkocpa
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Posted: 03 May 2010 at 20:21 | IP Logged  

Normally govts. sometimes issue short-term debts to provide financing until revenue sources have ben collected. These are also referred to as Tax Anticipation notes.Because they are short-term in nature, the debts are a claim on current financial resources. For modified accrual accounting used in fund accounting the debts are therefore recorded as a liability and not as "other financing sources'
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