Question

Jefferson County maintains a tax agency fund for use by the County Treasurer to record receivables, collections, and disbursements of all property tax collections to all units of government in the county. In the year 2018, the following taxes were levied:

1. $6,300,000 in property taxes were levied for the General Fund, of which 2% are deemed to be uncollectible.
2. $3,450,000 in property taxes were levied for the school district.
3. $3,150,000 in property taxes were levied for a village in the county.

Required:
A. Prepare the journal entries for each unit and the Agency Fund to record these levies.


B. The agency fund then collected 92% of the levy for each fund. The Jefferson County General Fund charges 2.5% of collections as a fee for maintaining the agency fund.

Prepare the journal entries for each unit and the Agency Fund to record these collections and fees.

Answer 1

Part-A)

Jefferson County General Fund
Taxes Receivable—Current	6,300,000
Estimated Uncollectible Current Taxes		126,000
Revenues Control		6,174,000
School District General Fund
Taxes Receivable—Current	3,450,000
Revenues Control		3,450,000
Village General Fund
Taxes Receivable—Current	3,150,000
Revenues Control		3,150,000
Jefferson County Tax Agency Fund
Taxes Receivable for Other Governments— Current	6,600,000
Due to Other Governments		6,600,000

　

Part-B)

	Taxes Collected	Fee (Charged)Received	Cash to be distributed
Jefferson County		151,800	151,800
School District	3,174,000	-79,350	3,094,650
Village	2,898,000	-72,450	2,825,550
	6,072,000		6,072,000

Jefferson County Tax Agency Fund
Cash	6,072,000
Taxes Receivable for Other Governments— Current		6,072,000
Due to Other Governments	6,072,000
Due to Jefferson County General Fund		151,800
Due to School District		3,094,650
Due to Village		2,825,550
Jefferson County General Fund
Due from County Tax Agency Fund	151,800
Revenues Control		151,800
School District General Fund
Due from County Tax Agency Fund	3,096,450
Expenditures Control	79,350
Taxes Receivable—Current		3,174,000
Village General Fund
Due from County Tax Agency Fund	2,825,550
Expenditures Control	72,450
Taxes Receivable—Current		2,898,000