Required information [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 2 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: 1. Current-year tax levies to be collected by the custodial fund were County General Fund Town of Bayshore Sun County Consolidated School District Total $ 7,664,480 5,508,845 10,778,175 $23,951,500 2. During the year, $20,358,000 of the current year's taxes was collected. 3. The 2 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. 4. All cash in the tax custodial fund was distributed. 5. Necessary closing entries were made at fiscal year-end.
Required information [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 2 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: 1. Current-year tax levies to be collected by the custodial fund were County General Fund Town of Bayshore Sun County Consolidated School District Total $ 7,664,480 5,508,845 10,778,175 $23,951,500 2. During the year, $20,358,000 of the current year's taxes was collected. 3. The 2 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. 4. All cash in the tax custodial fund was distributed. 5. Necessary closing entries were made at fiscal year-end.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Required information
[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 2 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:
1. Current-year tax levies to be collected by the custodial fund were
County General Fund
Town of Bayshore
Sun County Consolidated School District
Total
$ 7,664,480
5,508,845
10,778,175
$23,951,500
2. During the year, $20,358,000 of the current year's taxes was collected.
3. The 2 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.
4. All cash in the tax custodial fund was distributed.
5. Necessary closing entries were made at fiscal year-end.
c. Prepare journal entries for each of the foregoing entries that affected the Town of Bayshore. Begin with the tax levy entry, assuming
1 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.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F58f64e99-b3fb-491d-a9f5-7a66a1bd819c%2F3552275c-2420-45ac-b60d-81b03f132ac1%2Fmsy9cvd_processed.png&w=3840&q=75)
Transcribed Image Text:Required information
[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 2 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:
1. Current-year tax levies to be collected by the custodial fund were
County General Fund
Town of Bayshore
Sun County Consolidated School District
Total
$ 7,664,480
5,508,845
10,778,175
$23,951,500
2. During the year, $20,358,000 of the current year's taxes was collected.
3. The 2 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.
4. All cash in the tax custodial fund was distributed.
5. Necessary closing entries were made at fiscal year-end.
c. Prepare journal entries for each of the foregoing entries that affected the Town of Bayshore. Begin with the tax levy entry, assuming
1 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.)
Transcribed Image Text:Journal entry worksheet
<
A
Record the levy of current-year tax.
Note: Enter debits before credits.
Transaction
1
Record entry
A
B
Show Transcribed Text
Taxes Receivable-Current
Estimated Uncollectible Current Taxes
Revenues
Journal entry worksheet
Transaction
2
B
Record the taxes collected.
Note: Enter debits before credits.
General Journal
Record entry
Clear entry
General Journal
Cash
Expenditures (Collection Fees)
Taxes Receivable-Current
Clear entry
c
Debit
5,508,845
Debit
Credit
55,088
5,453,757
View general journal
Credit
4,682,340
View general journal
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