Question

Tax Agency Fund 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.

.:.
Information relative to the collection of property taxes for fiscal year 2012 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 2012.
An estimated 3% of billed taxes for 2012 will be uncollectible.
A summary of the activities of the Tax Agency Fund for the period January 1, 2012, to
June 30, 2012, 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.



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  • CreatedMarch 16, 2015
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