In: Accounting
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.
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.