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 | |||
ekkarill92 answered 1 year agoRelated 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
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