Question

The following information applies to the questions displayed below.] 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 2.1 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 $ 10,393,000 Town of Bayshore General Fund 4,870,000 Suncoast County Consolidated School District 6,580,000 Other towns 3,180,000 Total $ 25,023,000 2. $13,760,000 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. a. Prepare journal entries for each of the foregoing transactions that affected 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 4 percent of the gross levy will be uncollectible. 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 2 percent of the gross levy will be uncollectible.

Answer 1

Answer :

Suncoast County Tax Agency Fund : Journal Debit Credit

1. Tax Recievable for other Funds and Goverments Current 25,023,000

Due to Other Funds and Goverment 25,023,000

2. Cash a/c 13,760,000

  Tax Recievable for other Funds and Goverments Current 13,760,000

3.  Due to Other Funds and Goverment   13,760,000

Due to County General Fund (as per calculation) 5795499

Due to Town of Bayshore General Fund   2651204

Due to Suncoast County Consolidated School District   3582120

Due to Other towns 1731177

Note : Calculation of Shares in Total Recivable Fund

Shares Computation Taxes Collected 1% Fee Agency Liab.

County 10,393,000/25,023,000   

* 13,760,000 5715049 + 80450 5795500

Town   4,870,000/25,023,000

* 13,760,000 2677984 - 26780 2651204

School 6,580,000/25,023,000

* 13,760,000 3618303 - 36183 3582120

Townships 3,180,000/25,023,000

* 13,760,000 1748664 - 17487 1731177

4. Due to County General Fund (as per calculation) 5795499

  Due to Town of Bayshore General Fund 2651204

Due to Suncoast County Consolidated School District    3582120

Due to Other Towns 1731177

To Cash 13760,000

Part B

1. County General Fund Ledger

Debits Credits

1. Tax Receivable Current 10393000

Estimate Uncollectible taxes 103930

Revenues 10,289,070

2. Cash a/c 5795499

Taxes Recivable Current 5715049

Revenue Collection Fees 80450

Part 3 :

Town of Bayshore Debits Credits

1.Taxes Receivable Current 4,870,000  

Estimate Uncollectible Taxes (assuming 2% uncollectible) 97400

Revenues 4772600

2. Cash a/c 2651204

Revenue Deduction Fees 26780

Tax Recievable Account   2677984