Journal entries for a Custodial Fund The city of Belle collects property taxes for other local governments-Beau

Journal entries for a Custodial Fund 

 

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The city of Belle collects property taxes for other local governments-Beau County and the Landis independent School District (LISD), The city uses a Property Tax Collection Custodial Fund to account for its collection of property taxes for itself, Beau County, and LISD. Prepare journal entries to record the following transactions and events for Belle's Custodial Fund during calendar year 2019. 1. During 2019, property taxes were levied for Belle ($2,000,000), Beau County ($1,000,000) and LISD ($3,000,000), Assume taxes collected by the Custodial Fund will be paid to Belle's General Fund. 2. Property taxes in the amount of $4,500,000 are collected. The percentage collected for each entity is in the same proportion as the original levy. 3. The amount owed to the city of Belle, Beau County, and LISD is recognized. The city of Belle charges an administrative fee to Beau County ($20,000) and LISD ($60,000) to collect the taxes, which reduces the amount owed to Beau County and LISD. 4. The Custodial Fund distributes the amount owed to the three governments. Ref Description Debit 2.000,000 4,000,000 Credit Property taxes receivable for city-aurrent Property taxes receivable for other governments-current Due to General Fund 10,000 Additions-property tases colected for other govermments 2. 4000.000 Cash 4,500,000 Property taxes receivable for the city-current Property taxes recevable for other governmentsturrent Deductions-administrative costs 1500,000 3,000,000 B0,000 Deductions-property taxes distributed to Landis 50 Deductions-property taxes distributed to Beau County 60,000 x 20,000 x Due to General Fund B0,000 Due to Lands ISO 60,000 x Due to beau County 20,000 x Due to General Fund 1580.000 Due to Landis iSD 2,190,000 Due to Beau Courty 730.000 Cash 4500.000 The city of Belle collects property taxes for other local governments-Beau County and the Landis independent School District (LISD), The city uses a Property Tax Collection Custodial Fund to account for its collection of property taxes for itself, Beau County, and LISD. Prepare journal entries to record the following transactions and events for Belle's Custodial Fund during calendar year 2019. 1. During 2019, property taxes were levied for Belle ($2,000,000), Beau County ($1,000,000) and LISD ($3,000,000), Assume taxes collected by the Custodial Fund will be paid to Belle's General Fund. 2. Property taxes in the amount of $4,500,000 are collected. The percentage collected for each entity is in the same proportion as the original levy. 3. The amount owed to the city of Belle, Beau County, and LISD is recognized. The city of Belle charges an administrative fee to Beau County ($20,000) and LISD ($60,000) to collect the taxes, which reduces the amount owed to Beau County and LISD. 4. The Custodial Fund distributes the amount owed to the three governments. Ref Description Debit 2.000,000 4,000,000 Credit Property taxes receivable for city-aurrent Property taxes receivable for other governments-current Due to General Fund 10,000 Additions-property tases colected for other govermments 2. 4000.000 Cash 4,500,000 Property taxes receivable for the city-current Property taxes recevable for other governmentsturrent Deductions-administrative costs 1500,000 3,000,000 B0,000 Deductions-property taxes distributed to Landis 50 Deductions-property taxes distributed to Beau County 60,000 x 20,000 x Due to General Fund B0,000 Due to Lands ISO 60,000 x Due to beau County 20,000 x Due to General Fund 1580.000 Due to Landis iSD 2,190,000 Due to Beau Courty 730.000 Cash 4500.000

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