a. Prepare the general journal entries required to record the following transactions in the general ledgers of the state, the County General Fund, and the County Tax Agency Fund. You may omit formal entry explanations but should key the entries to the numbered items in this problem.
1. The County Tax Agency Fund has been established to account for the county’s duties of collecting the county and state property taxes. The levies for the year 20X0 were $600,000 for the County General Fund and $480,000 for the state. It is expected that uncollectible taxes will be $10,000 for the state and $15,000 for the county.
2. Collections were $300,000 for the county and $240,000 for the state.
3. The county is entitled to a fee of 1% of taxes collected for other governments. The amounts due to the state and to the County General Fund are paid except for the collection fee due to the County General Fund.
4. The fee is transmitted from the Tax Agency Fund to the County General Fund.
5. Uncollectible taxes in the amount of $5,000 for the state and $6,000 for the county are written off.
b. Prepare the GAAP-based Statement of Net Position for the Tax Agency Fund. Assume that the beginning balances of taxes receivable were county, $120,000, and state, $96,000.