Lee County maintains a tax agency fund to record and distribute property tax col

Question

Lee County maintains a tax agency fund to record and distribute property tax collections to other
units of government in the county. For the fiscal year-end December 31, 2017, the following
taxes were assessed:

? Lee County General Fund................ $8,000,000
? City of Tampa............................. 6,000,000
? City of Clearwater............................ 4,000,000
? Lee County School District.............. 2,000,000

All units provide for an estimated 3% uncollectible. During the first 6 months of the year, cash
collections amounted to $12,000,000 and were collected in proportion to the assessments. The
general fund of Lee County charges 1% of all tax collected for other governments to cover cost
of operating the Agency Fund.

What was the balance in the Agency Fund’s “Due to Other Governments” after

the journal entries?
A. $4,752,000 B. $8,000,000 C. $4,656,000 D. $4,800,000

What amount did the City of Tampa report as REVENUE?

A. $5,820,000 B. $3,564,000 C. $3,600,000 D. $5,760,000

What total amount did the General Fund of Lee County record as REVENUE

from the above information?
A. $4,872,000 B. $7,832,000 C. $7,760,000 D. $7,880,000

Explanation / Answer

As per the given instruction:

Part A.:Out of total fund receivable of $20,000,000, cash collected is of amount $ 12,000,000.

Hence, balance fund due in the agency fund is B. $8,000,000.

Part B: Amount of revenue Tampa report will: D.$5,760,000 i.e 6,000,000 - 180,000 - 60,000.

Part C: General fund of Lee County record Revenue of D. $7,880,000 i.e. 8,000,000 - 120,000 ( 12,000,000*.01).

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