Question

Benton County includes an independent school district and two individually chartered towns within the County Benton Countr's Treasurer assesses and collects property taxes on behalf of itself, the school district, and the towns. The County uses a tax collection custodial fund to record tax collections for the school district and towns. During the year ended December 31, 2020, the following transactions took place:

1. The County levied taxes as follows:

Benton County General Fund $26,700,000

School District 14,200,000

Towns 4,200,000

Total $45,100,000

2. The property taxes levied in part (a) were collected.

3. The amounts collected were paid to the school district and towns.

Required

a. Prepare journal entries for Benton County and the Benton County Independent School District-identify the funds.

Answer 1

Here iall the journal entries are related to Governmental type Activity ,Governmental fund Accounting Use BAE Accounting-Modified Accrual Accounting

At the Begnning of the when county levies

BAE-Budgetary Accounting- For General Fund- 26,700,000

At the Beginning of the Year-

Dr.Estimated Revenue 26,700,000 Cr.Appropriation 26,700,000

BAE-Activity-Property tax levied

Dr.Property Taxes Receivable 45,100,000 Cr.Revenue -Property Taxes   45,100,000

At the End of the Year- the Same has to be Closed.

For BAE

Dr. Appropriation 26,700,000 Cr.Estimated Revenue 26,700,000

For BAE

Dr.Revenue -Property Taxes   45,100,000 Cr. Property Taxes Receivable   45,100,000

To record Collection of Tax county uses a tax collection custodial fund-Fiduciary Funds Accrual Accounting

When Property taxes rare collected school district and Towns Single aggregated Total for additions in which resources upon receipts are expected to be held for 3 months.

When the Property taxes are distributed to towns and school district may be reported as single aggregated total for Deductions in which resources are upon receipt held for three months.