6. Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct 1.5 percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund. You are to record the following transactions in the accounts of the Washington County Tax Agency Fund.1. Current year tax levies to be collected by the Tax Agency Fund were:County General Fund -- $9,800,000Town of Samuels -- 6,200,000Washington County School District -- 9,600,0002. In the first half of the year $4,120,000 was collected for the County General Fund, $3,456,000 for the Town and $4,608,000 for the School District.3. Liabilities to all three units were recorded.Required: Record the transactions in the accounts of the Washington County Tax Agency Fund. **Title: Understanding Financial Accounting Entries for County Funds****Calculations:**This section involves a breakdown of financial obligations and transactions for specific local entities within Washington County. The columns indicated include:1. **Levy:** Represents the initial tax or charge imposed on these entities.2. **Collections:** Reflects the amount collected from these levies.3. **Fee (1.5%):** Represents a processing fee calculated at 1.5% of the collections.4. **Amount Due:** Total amount that needs to be settled after accounting for the fee.The entities listed are:- County General Fund- Town of Samuels- Washington County School District**Note:** The specific numerical values for each category are not provided in this sheet.---**Washington County General Journal:**This section is designed to record specific transactions related to the county's financial activities. It includes:1. **Account:** A placeholder for the name or number of specific accounts involved in the transactions. These are labeled numerically (1, 2, 3).2. **DR (Debit):** The amount to be entered on the debit side of the respective accounts.3. **CR (Credit):** The amount to be entered on the credit side.**Description:**- The worksheet appears to highlight the areas for input with a yellow fill, indicating that these cells are intended for user-entered data.- This structured format allows for accurate recording and monitoring of financial transactions, applicable for educational purposes in understanding basic accounting principles.By engaging with this worksheet format, learners and practitioners can gain insights into maintaining balanced ledgers and ensuring transparency in public fund management.

Calculations: Levy Collections Fee (1.5%) Amount due Country general fund 120960 120960 Town of Samuels 62,00,000 34,56,000 -51,840 34,04,160 Washigton Country School District 96,00,000 46,08,000 -69120 45,38,880 1,58,00,000 80,64,000 0 8064000Item Descriptions Debit Credit 1 Tax receivable for other government 1,58,00,000 Due to other government 1,58,00,000 2 Cash 80,64,000 Tax receivable for other government 80,64,000 3 Due to other governments 80,64,000 Due to Country General Fund 120960 Due to Town of Samuels 34,04,160 Due to Washington Country School District 45,38,880

Answered: Washington County assumed the…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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6. Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct 1.5 percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund. You are to record the following transactions in the accounts of the Washington County Tax Agency Fund.

1. Current year tax levies to be collected by the Tax Agency Fund were:
County General Fund -- $9,800,000
Town of Samuels -- 6,200,000
Washington County School District -- 9,600,000

2. In the first half of the year $4,120,000 was collected for the County General Fund, $3,456,000 for the Town and $4,608,000 for the School District.

3. Liabilities to all three units were recorded.

Required: Record the transactions in the accounts of the Washington County Tax Agency Fund.

**Title: Understanding Financial Accounting Entries for County Funds**

**Calculations:**

This section involves a breakdown of financial obligations and transactions for specific local entities within Washington County. The columns indicated include:

1. **Levy:** Represents the initial tax or charge imposed on these entities.
2. **Collections:** Reflects the amount collected from these levies.
3. **Fee (1.5%):** Represents a processing fee calculated at 1.5% of the collections.
4. **Amount Due:** Total amount that needs to be settled after accounting for the fee.

The entities listed are:

- County General Fund
- Town of Samuels
- Washington County School District

**Note:** The specific numerical values for each category are not provided in this sheet.

---

**Washington County General Journal:**

This section is designed to record specific transactions related to the county's financial activities. It includes:

1. **Account:** A placeholder for the name or number of specific accounts involved in the transactions. These are labeled numerically (1, 2, 3).
2. **DR (Debit):** The amount to be entered on the debit side of the respective accounts.
3. **CR (Credit):** The amount to be entered on the credit side.

**Description:**

- The worksheet appears to highlight the areas for input with a yellow fill, indicating that these cells are intended for user-entered data.
- This structured format allows for accurate recording and monitoring of financial transactions, applicable for educational purposes in understanding basic accounting principles.

By engaging with this worksheet format, learners and practitioners can gain insights into maintaining balanced ledgers and ensuring transparency in public fund management.

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