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 2.9 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 6,615,000 $10,463,000 4,905,000 Total $21,983,000 2. During the year, $13,830,000 of the current year's taxes was collected. 3. 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. 4. All cash in the tax custodial fund was distributed. 5. Necessary closing entries were made at fiscal year-end. Prepare journal entries for each of the foregoing transactions that affected the taxe fund. (If no entry is required for a transaction/event, seleet "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) astodial Record the 5 percent administration collection fee to be deducted. Record the distribution of cash collected during the year. Record the closing entry for additions and deductions to net position.
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 2.9 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 6,615,000 $10,463,000 4,905,000 Total $21,983,000 2. During the year, $13,830,000 of the current year's taxes was collected. 3. 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. 4. All cash in the tax custodial fund was distributed. 5. Necessary closing entries were made at fiscal year-end. Prepare journal entries for each of the foregoing transactions that affected the taxe fund. (If no entry is required for a transaction/event, seleet "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.) astodial Record the 5 percent administration collection fee to be deducted. Record the distribution of cash collected during the year. Record the closing entry for additions and deductions to net position.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text: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
2.9 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_ 6.615.000
$10.463.000
4,905,000
Total
S21,983.000
2. During the year, $13,830,000 of the current year's taxes was collected.
3. 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.
4. All cash in the tax custodial fund was distributed.
5. Necessary closing entries were made at fiscal year-end.
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.)
Record the 5 percent administration collection fee to be deducted.
Record the distribution of cash collected during the year.
Record the closing entry for additions and deductions to net position.
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