The county collector of Sun County is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax custodial fund, the custodial fund deducts 5 percent from the collections for the town, the school district, and the other towns. The total amount deducted is added to the collections for the county and remitted to the Sun County General Fund. The following events occurred during the year:
Required information
Skip to question
[The following information applies to the questions displayed below.]
The county collector of Sun County is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax custodial fund, the custodial fund deducts 5 percent from the collections for the town, the school district, and the other towns. The total amount deducted is added to the collections for the county and remitted to the Sun County General Fund.
The following events occurred during the year:
-
Current-year tax levies to be collected by the custodial fund were
| County General Fund | $ | 10,383,000 | ||
| Town of Bayshore | 4,865,000 | |||
| Sun County Consolidated School District | 6,575,000 | |||
| Total | $ | 21,823,000 | ||
-
During the year, $13,750,000 of the current year's taxes was collected.
-
The 5 percent administrative collection fee was recorded. A schedule of amounts collected for each participant, showing the amount withheld for the county General Fund and net amounts due to the participants, is recommended for determining the amount to be recorded for this transaction.
-
All cash in the tax custodial fund was distributed.
-
Necessary closing entries were made at fiscal year-end.
Required
- Prepare journal entries for each of the foregoing transactions that affected the tax custodial fund. (If no entry is required for a transaction/event, select "No
Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) - Prepare journal entries for each of the foregoing transactions that affected the Sun County General Fund. Begin with the tax levy entry, assuming 3 percent of the gross levy will be uncollectible. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
- Prepare journal entries for each of the foregoing entries that affected the Town of Bayshore. Begin with the tax levy entry, assuming 3 percent of the gross levy will be uncollectible. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)
- Which financial statements would be prepared by the tax custodial fund? The resources are held for less than three months. (You may select more than one answer. Single click the box with the question mark to produce a check mark for a correct answer and double click the box with the question mark to empty the box for a wrong answer. Any boxes left with a question mark will be automatically graded as incorrect.)
Trending now
This is a popular solution!
Step by step
Solved in 6 steps with 7 images
