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City of Smithville- Chapter 8 I need help preparing the journal entries for this example [Para....

City of Smithville- Chapter 8 I need help preparing the journal entries for this example [Para. 8-b-4] Current taxes were collected during the year for the funds and governments shown below:

Funds/Governments: Current Taxes

Collected City of Smithville General Fund $ 1,488,206

Smithville CSD 8,412,730

Smith County 2,069,800

Smith County FPD   1,747,540

Total collected $13,718,276

Required: Record the collections of current taxes and recognize specific liabilities to each fund or government, after deducting the 1 percent collection fee from other governments and adding the total collection fee to the amount due the City of Smithville General Fund. Make these entries only in the Tax Agency Fund general journal.

Solutions

Expert Solution

Date Particulars Dr. Cr.
Payment of Current taxes to Smithville CSD $   8,328,603
Payment of Current taxes to Smith County $   2,049,102
Payment of Current taxes to Smith County FPD $   1,730,065
Payment of Current taxes to Collected City of Smithville General Fund $   1,610,507
To Current tax collections $       13,718,276

Note - Calculation of liabilities to each fund

Particulars Tax Collected Agency Fee 1% Liability
Collected City of Smithville General Fund $   1,488,206 $            122,301 $   1,610,507
Smithville CSD $   8,412,730 $            (84,127) $   8,328,603
Smith County $   2,069,800 $            (20,698) $   2,049,102
Smith County FPD $   1,747,540 $            (17,475) $   1,730,065
Total $13,718,276 $                       -   $13,718,276

Agency fee ($122,301) deducted from other funds added to Collected City of Smithville General Fund.


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