please show steps Queens County collects property taxes for 20 independent schoo

Question

please show steps

Queens County collects property taxes for 20 independent school district with which it shares common boundaries The county bills taxpayers for both itself and the school district on a single invoice. At the start of a year it held $3 million in cash not yet remitted to the school district. During the year, the county collects $4 million of taxes on behalf of the school district To earn interest on the funds received, the county invests $4 million in short-term securities It earns and collected $1 million in interest. Assuming that by agreement with the school district all investment risks and rewards are those of the district, not the county It sells $3 million of the investments at no gain or loss. It distributes $3.0 million to thie school district Determine the financial statement impact for the Queens County: Total Asset Queens County reported at Year End is

Explanation / Answer

Step1: Total Assets of queen county includes cash balance at the end of the year and Investments which is calculated as follows:-

Calculation of Cash Balance at the year end (Amount in $ million)

Statement showing Total Assets of Queen County at year end (Amt. in $ million)

Opening Cash balance 3 Add: Collection of taxes on behalf of school district 4 Less: Investments in short term securities (4) Add: Interest on Investments 1 Add: Sale of Investments 3 Less: Distribution to school district (3) Closing cash balance 4

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