Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order
Question:
Washington County assumed the responsibility of collecting property taxes for all governments within its boundaries. In order to reimburse the county for expenditures for administering the Tax Agency Fund, the Tax Agency Fund is to deduct two percent from the collections from the city and school district. The total amount deducted is to be added to the collections for the county and remitted to the County General Fund.
You are to record the following transactions in the accounts of the Washington County Tax Agency Fund.
1). Current year tax levies to be collected by the Tax Agency Fund were:
- County General Fund $5,500,000
- Town of Samuels 4,500,000
- Washington County School District 6,000,000
2). $7,200,000 in current taxes were collected in the first half of the year. Amounts collected for each unit are proportional to the total levied.
3). Liabilities to all three units were recorded.
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