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