Question: Tax Agency Fund The county collector of Lincoln County is

Tax Agency Fund. The county collector of Lincoln County is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax agency fund, the agency fund deducts 1 percent from the collections for the town, the school district, and the townships. The total amount deducted is added to the collections for the county and remitted to the Lincoln County General Fund.
The following events occurred in 2011:
1. Current-year tax levies to be collected by the agency fund were:
County General Fund $2,752,000
Town of Smithton General Fund 4,644,000
Lincoln Co. Consolidated School District 7,912,000
Various townships 1,892,000
Total $17,200,000
2. $8,400,000 of current taxes was collected during the first half of 2011.
3. Liabilities to all funds and governments as the result of the first half-year collections were recorded. (A schedule of amounts collected for each participant. showing the amount withheld for the county General Fund and net amounts due the participants. is recommended for determining amounts to be recorded for this transaction.)
4. All money in the tax agency fund was distributed.
Required
a. Make journal entries for each of the foregoing transactions that affected the tax agency fund.
b. Make journal entries for each of the foregoing transactions that affected the Lincoln County General Fund. Begin with the tax levy entry, assuming 3 percent of the gross levy will be uncollectible.
c. Make journal entries for each of the foregoing entries that affected the Town of Smithton General Fund. Begin with the tax levy entry, assuming 3 percent of the gross levy will be uncollectible.
d. Which financial statements would be prepared by the tax agency fund?


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  • CreatedDecember 03, 2011
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