A local government operates on a calendar year basis. Prepare journal entries to record the following transactions and events for calendar year 2012:
1. On February 1, 2012, borrowed $ 100,000 on tax anticipation notes (TANs). The TANs will be repaid with 1.0 percent interest on January 31, 2013.
2. To prepare for issuing financial statements for 2012, accrued interest on the TANs through December 31, 2012.
3. Invested $ 50,000 in a CD on April 1, 2012. The CD, which pays interest of 1.5 percent, will mature on September 30, 2012.
4. The CD matured on September 30, 2012.