Benton County maintains a tax agency fund for use by the county treasurer to rec

Question

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

Total $51,300,000

During the first six months of the fiscal year, the following transactions took place:

1. The levy became effective. All units of government provided for an estimated 2 percent in uncollectible taxes.

2. Cash collections of the first installment of taxes were as follows:

Benton County General Fund $8,750,000

Town of Thomas 3,600,000

Town of Hart 2,400,000

Benton County School District 8,750,000

Various Special Districts    1,124,000

Total    $24,624,000

3. Record the liabilty to the other governmenental 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.

4. Cash was paid to the various governmental units.

Required:

a. Record the transaction 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.

Benton County TaxAgency Fund General Journal Account Debit Amount Credit Amount 1 Taxes Receivables for other goverenments-current………...dr 33050000            To Due to other Funds and Units 33050000 (51,300,000 - 18,250,000) 2 Cash a/c…………………………dr 15874000       To Taxes receivable for other governments-current 15874000 3 Due to Other Funds and Units…………dr 15874000        To Due to Benton County General Fund 476220        To Due to Town of Thomas 3492000       To Due to Town of Hart 2328000        To Due to Benton County School District 8487500       To Due to various special Districts 1090280 4 Due to Benton County General Fund……..dr 476220 Due to Town of Thomas…………………………..dr 3492000 Due to Town of Hart……………………………….dr 2328000 Due to Benton County School District……dr 8487500 Due to Various Special Districts……………..dr 1090280         To Cash 15874000

Related Questions

Navigate

• Browse (All)
• Browse B
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.