Benton County maintains a tax agency fund for use by the County Treasurer to rec
ID: 2512795 • Letter: B
Question
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:
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:
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.
Explanation / Answer
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
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