An administrative section of the County Assessor’s Office of Mecklenburg County serves as the billing and collection agency for all property taxes assessed in Mecklenburg County. A charge of 1% of taxes and penalties collected is apportioned among recipients of the taxes for this service. All property tax records—current and delinquent—are maintained in this administrative unit. The 1% charge is included as revenue in the General Fund budget of the county government.

Current Assets:                                                 Liabilities:
Cash ...............................................................    Vouchers payable
Due from general fund ................................    Advance from electric utility
Due from electric utility fund
Computer service .........................................    Net Position:
                                                                               Unrestricted net position
Fixed Assets:
Land ...............................................................    Revenue:
Building .........................................................    Billing to departments
Equipment—hardware ................................    Contribution from general fund
Equipment—protection
Accumulated depreciation                                Costs and Expense:
                                                                               Cost of computer service
                                                                               Administrative expense

Information relative to the collection of property taxes for fiscal year 2020 is as follows:

Assessed valuation ..................................................    $5,826,300

Tax rates per $100 assessed:

County government ................................................    $          1.20

State government ....................................................                  .80

City of Midvale .........................................................                2.80

Unified school district ............................................                 3.20

Tax bills are issued on January 1; taxes are payable without penalty by April 30; taxes paid after April 30 are subject to a 5% penalty for late payment. Taxes not paid by June 30 are considered delinquent.

No delinquent taxes remain uncollected for years prior to 2020. An estimated 3% of billed taxes for 2020 will be uncollectible. A summary of the activities of the Tax Agency Fund for the period January 1, 2020, to June 30, 2020, includes the following:

January 1 Tax bills are mailed to property owners. Accounts are opened by the tax collection unit.

April 30 Taxes collected and deposited during first four months total $372,883.

Distribution of taxes collected is made to the applicable governmental units.

June 30 Taxes collected and deposited during May and June including the 5% penalty total $73,412.

Distribution of taxes and penalties collected is made to the applicable governmental units.

Required:

A. Prepare in general journal form entries to record the activities of the Tax Agency Fund from January 1 to June 30. Establish a Delinquent Account for taxes not collected.

B. Prepare a balance sheet for the Tax Agency Fund after adjusting the accounts on June 30.