Question

In: Accounting

Benton County maintains a tax agency fund for use by the County Treasurer to record receivables,...

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

Benton County General Fund $ 18,330,000
Town of Thomas 6,028,000
Town of Hart 4,020,000
Benton County School District 18,342,000
Various Special Districts 4,824,000
Total $ 51,544,000


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

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

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

Benton County General Fund $ 8,790,000
Town of Thomas 3,616,000
Town of Hart 2,412,000
Benton County School District 8,794,000
Various Special Districts 1,128,000
Total $ 24,740,000

Record the liability to the other governmental 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.

Cash was paid to the various governmental units.

Required:
a.
Record the transactions 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.

Solutions

Expert Solution

a. Record the Transaction on the books of the Benton Country Tax Agency Fund
Benton County Tax Agency Fund
General Journal
FY 2016/2017
Event Account Tittle Debit Credit
1 Taxes Receivable for Other Governments - Current ($51544000 - $18342000)) $33,202,000
Due to Other Funds and Units $33,050,000
2 Cash ($24740000 - $8790000) $15,950,000
Taxes Receivable for Other Governments - Current $15,950,000
3 Due to Other Funds and Units $15,950,000
Due to Benton County General Fund ($1595000*1.5%) $239,250
Due to Town of Thomas D51 $3,561,760
Due to Town of Hart ($2412000*0.985) $2,375,820
Due to Benton County School District ($8794000*0.985) $8,662,090
Due to Various Special Districts ($1128000*0.985) $1,111,080
4 Due to Benton County General Fund $239,250
Due to Town of Thomas $3,561,760
Due to Town of Hart $2,375,820
Due to Benton County School District $8,662,090
Due to Various Special Districts $1,111,080
Cash $15,950,000
b. Record the Transaction on the books of the Benton Country General Fund
Benton County General Fund
General Journal
FY 2016/2017
Event Account Tittle Debit Credit
1 Tax Receivable - Current $18,330,000
Estimated Uncollectible Current Taxes ($18330000*2%) $366,600
Revenues $17,963,400
2 Cash $8,790,000
Tax Receivable - Current $8,790,000
3 Due from Tax Agency Fund $239,250
Revenues $239,250
4 Cash $239,250
Due from Tax Agency Fund $239,250
c.. Record the Transaction on the books of the Town of Thomas
Town of Thomas
General Fund
General Journal
FY 2016/2017
Event Account Tittle Debit Credit
1 Tax Receivable - Current $6,028,000
Estimated Uncollectible Current Taxes ($6028000*2%) $120,560
Revenues $5,907,440
2 Due from Tax Agency Fund ($3616000*0.985) $3,561,760
Expenditures ($3616000*1.5%) $54,240
Tax Receivable - Current $3,616,000
4 Cash $3,561,760
Due from Tax Agency Fund $3,561,760
Note: Dear student .. provided the perfect answer for your question .. kindly rate ... leave a message if u have any doubts

Related Solutions

Benton County maintains a tax agency fund for use by the county treasurer to record receivables,...
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:...
Mitchell County maintains a tax agency fund for use by the County Treasurer to record receivables,...
Mitchell County maintains a tax agency fund for use by the County Treasurer to record receivables, collections, and disbursements of all property tax collections to all units of government in the county. In the year 2019, the following taxes were levied: 1. $4,800,000 in property taxes were levied for the General Fund, of which 3% are deemed to be uncollectible. 2. $2,625,000 in property taxes were levied for the school district. 3. $2,415,000 in property taxes were levied for a...
Baird County maintains an investment trust fund for the School District and the Town of Bairdville...
Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance for the investment trust fund, a private-purpose trust fund. Trial Balance—December 31, 2017 Debits Credits Accrued Interest Receivable $ 23,000 Cash 38,300 Deposits—School District $ 459,600 Deposits—Town of Bairdville 336,200 Decrease in Fair Value of Investments (bonds) 15,300 Interest Income 91,800 Investments—Corporate Bonds 1,576,000 Investments—U.S. Treasury Securities 1,530,000 Net Position held in trust—School District (Jan....
Baird County maintains an investment trust fund for the School District and the Town of Bairdville...
Baird County maintains an investment trust fund for the School District and the Town of Bairdville (separate governments). Presented below is the preclosing trial balance for the investment trust fund, a private-purpose trust fund. Trial Balance—December 31, 2017 Debits Credits Accrued Interest Receivable $ 23,000 Cash 38,300 Deposits—School District $ 459,600 Deposits—Town of Bairdville 336,200 Decrease in Fair Value of Investments (bonds) 15,300 Interest Income 91,800 Investments—Corporate Bonds 1,576,000 Investments—U.S. Treasury Securities 1,530,000 Net Position held in trust—School District (Jan....
Record both budgetary and actual journal entries for the capital projects fund of Everett County. Record...
Record both budgetary and actual journal entries for the capital projects fund of Everett County. Record all appropriate accruals. No closing entries are required. Assume a fiscal year-end of December 31. 20x7 1. The county issues $5,000,000 of 5%, 9-month bond anticipation notes on July 1, 20x7, to allow the county to begin immediate construction on a new state of the art recreational baseball complex for area youth. The bond anticipation notes are issued in relation to the upcoming bond...
Martin receives the following tax bills, related to a rental dwelling, from the county treasurer:
Martin receives the following tax bills, related to a rental dwelling, from the county treasurer:Special assessment for installing sidewalks and streets$12,000Real property tax on dwelling for the 1/1/18–12/31/18 property tax year, due on 10/1/18$1,500On May 1, 2018, Martin sells the dwelling for $70,000. His basis in the dwelling at the date of sale is $40,000. Martin's basis in the dwelling does not reflect the property tax bills. As part of the sale contract, the buyer agrees to pay the real...
At the start of 2020, a county general fund issues property tax bills in the amount...
At the start of 2020, a county general fund issues property tax bills in the amount of $9,000,000. It expects to collect $8,800,000 from property owners, with the rest expected to be uncollectible. During the year, $8,750,000 in 2020 property taxes is collected. Of the remaining $250,000 in uncollected taxes at year-end, it is estimated that $100,000 will be collected within 60 days and the rest are uncollectible. Using the attached T-account template, prepare the entries required to recognize the...
Chapter 8 Recording Transactions Affecting a Fiduciary Fund—a Tax Agency Fund The City of Smithville administers...
Chapter 8 Recording Transactions Affecting a Fiduciary Fund—a Tax Agency Fund The City of Smithville administers a tax agency fund that bills and collects property taxes levied by the governing bodies of the Smithville Consolidated School District (CSD), Smith County, and the Smith County Fire Protection District (FPD), in addition to those levied by the City of Smithville for its General Fund. (Note: Beginning in FY 2018, the tax agency fund will also account for property tax billing and collection...
A city uses a Property Tax Collection Custodial Fund to account for the collection of property taxes for itself, a county, and a school district.
Part VII: Custodial FundsA city uses a Property Tax Collection Custodial Fund to account for the collection of property taxes for itself, a county, and a school district. Prepare journal entries to record the following transactions and events for city’s Custodial Fund during calendar year 2020.During 2020, property taxes were levied for the city ($6,000,000), the county ($3,000,000) and school district ($9,000,000). Assume taxes collected by the Custodial Fund for the city will be paid to the city’s General Fund.Property...
Use economic reasoning to analyze the impacts of an employee payroll tax to fund a program...
Use economic reasoning to analyze the impacts of an employee payroll tax to fund a program such as paid family leave
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT