Question

The county collector of Suncoast County is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax agency fund, the agency fund deducts 1.8 percent from the collections for the town, the school district, and the other towns. The total amount deducted is added to the collections for the county and remitted to the Suncoast County General Fund.

The following events occurred in 2017:

1.	Current-year tax levies to be collected by the agency were:

County General Fund	$	10,363,000
Town of Bayshore General Fund		4,855,000
Suncoast County Consolidated School District		6,565,000
Other towns		3,150,000
Total	$	24,933,000

2.	$13,730,000 of current taxes was collected during the first half of 2017.
3.	Liabilities to all funds and governments as a result of the first half-year collections were recorded. (A schedule of amounts collected for each participant, showing the amount withheld for the county General Fund and net amounts due the participants, is recommended for determining amounts to be recorded for this transaction.)
4.	All cash in the tax agency fund was distributed.

Required
a.	Prepare journal entries for each of the foregoing transactions that affected the tax agency fund. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

1. Record the current-year tax levies to be collected by the agency.
2. Record the current taxes collected during the first half of 2017.
3. Record the liabilities due to all funds and governments at the end of first half-year.
4. Record the distribution of all cash in the tax agency fund.

b.

Prepare journal entries for each of the foregoing transactions that affected the Suncoast County General Fund. Begin with the tax levy entry, assuming 5 percent of the gross levy will be uncollectible. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

• Record the revenues receivable and uncollectible.
• Record the foregoing transactions that affected the Suncoast County General Fund.
• Record the liabilities due to all funds and governments at the end of first half-year.
• Record the taxes collected.

c.

Prepare journal entries for each of the foregoing entries that affected the Town of Bayshore General Fund. Begin with the tax levy entry, assuming 3 percent of the gross levy will be uncollectible. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

• Record the revenues receivable and uncollectible.
• Record the foregoing transactions that affected the Town of Bayshore General Fund.
• Record the liabilities due to all funds and governments at the end of first half-year.
• Record the taxes collected.

Answer 1

Part A

Transaction	General journal	Debit	Credit
1	Taxes Receivable for Other Funds and Governments—Current	24933000
	Due to Other Funds and Governments		24933000
2	Cash	13730000
	Taxes Receivable for Other Funds and Governments—Current		13730000
3	Due to Other Funds and Governments	13730000
	Due to County General Fund		5851073
	Due to Town of Bayshore		2625407
	Due to Suncoast County Consolidated School District		3550114
	Due to Various Towns		1703406
4	Due to County General Fund	5851073
	Due to Town of Bayshore	2625407
	Due to Suncoast County Consolidated School District	3550114
	Due to Various Towns	1703406
	Cash		13730000

Shares	Computation		Taxes collected		1.8% fee		Agency’s liability
County	10363000/24933000*13730000	=	5706653	+	144420	=	5851073
Bayshore	4855000/24933000*13730000	=	2673531	-	48124	=	2625407
School	6565000/24933000*13730000	=	3615187	-	65073	=	3550114
Towns	3150000/24933000*13730000	=	1734629	-	31223	=	1703406

Part B

Transaction	General journal	Debit	Credit
1	Taxes Receivable—Current	10363000
	Estimated Uncollectible Current Taxes (10363000*5%)		518150
	Revenues (balancing figure)		9844850
2	No Journal Entry Required
3	No Journal Entry Required
4	Cash	5851073
	Taxes Receivable—Current		5706653
	Revenues (Collection Fees)		144420

Part C

Transaction	General journal	Debit	Credit
1	Taxes Receivable—Current	4855000
	Estimated Uncollectible Current Taxes (4855000*3%)		145650
	Revenues		4709350
2	No Journal Entry Required
3	No Journal Entry Required
4	Cash	2625407
	Expenditures (Collection Fees)	48124
	Taxes Receivable—Current		2673531