Question

Benton County maintains a tax agency fund for use by the county treasurer to record receivables, collections and disbursement of all property tax collections to all other units of government inthe county. For FY 2016-2017 the following taxes were assessed:

Benton County General fund $18,250,000

Town of Thomas    6,000,000

Town of Hart    4,000,000

Benton County School District 18,250,000

Various Special Districts 4,800,000

Total $51,300,000

During the first six months of the fiscal year, the following transactions took place:

1. The levy became effective. All units of government provided for an estimated 2 percent in uncollectible taxes.

2. Cash collections of the first installment of taxes were as follows:

Benton County General Fund $8,750,000

Town of Thomas 3,600,000

Town of Hart 2,400,000

Benton County School District 8,750,000

Various Special Districts    1,124,000

Total    $24,624,000

3. Record the liabilty to the other governmenental units, assuming that the county General Fund charges other governments 1.5 percent of all tax collected because the county General Fund incurs all costs of billing, recording and collecting taxes.

4. Cash was paid to the various governmental units.

Required:

a. Record the transaction on the books of the Benton County Tax Agency fund

b. Record the transactions on the books of the Benton County General Fund

c. Record the transactions on the books of the Town of Thomas

Answer 1

a.

Benton County TaxAgency Fund
General Journal
	Account	Debit Amount	Credit Amount
1	Taxes Receivables for other goverenments-current………...dr	33050000
	To Due to other Funds and Units		33050000
	(51,300,000 - 18,250,000)
2	Cash a/c…………………………dr	15874000
	To Taxes receivable for other governments-current		15874000
3	Due to Other Funds and Units…………dr	15874000
	To Due to Benton County General Fund		476220
	To Due to Town of Thomas		3492000
	To Due to Town of Hart		2328000
	To Due to Benton County School District		8487500
	To Due to various special Districts		1090280
4	Due to Benton County General Fund……..dr	476220
	Due to Town of Thomas…………………………..dr	3492000
	Due to Town of Hart……………………………….dr	2328000
	Due to Benton County School District……dr	8487500
	Due to Various Special Districts……………..dr	1090280
	To Cash		15874000

	Amount	Adjustment	Net
Computations	Collected	For fee (1.5%)	Due
Benton County General Fund		476220	476220
Town of thomas	3600000	108000	3492000
Town of Hart	2400000	72000	2328000
School District	8750000	262500	8487500
Various Special Districts	1124000	33720	1090280
Total	15874000	0	15874000

(b)
Benton County General Fund
General Journal
	Account	Debit Amount	Credit Amount
1	Taxes Receivable -Current	18250000
	To Estimated Uncollectible Current Taxes		547500
	To Revenues Control		17702500
2	Cash………………………………dr	8750000
	To Taxes Receivables-Current		8750000
3	Due from Tax Agency Fund	476220
	To Revenues Control		476220
4	Cash …………………………………..dr	476220
	To Due from Tax Agency Fund		476220

(c)
Town of Thomas General Fund
General Journal
	Account	Debit Amount	Credit Amount
1	Taxes Receivable-Current	6000000
	To Estimated Uncollectible Current Taxes		180000
	To Revenues Control		5820000
3	Due from Tax Agency Fund ……..dr	3546000
	Expenditures Control……………..dr	54000
	To Taxes Receivables - Current		3600000
4	Cash………………….dr	3492000
	To Due from Tax Agency Fund		3492000