1 Partially correct Mark 6.43 out of 10.00 Custodial Fund Flag question eBook Print In compliance with a newly enacted state law, Dial County assumed the responsibility of collecting all property taxes for the county, as well as Eton City and Bart Township within the county, as of July 1, 2023. A composite property tax rate per $1,000 of assessed valuation was developed for the fiscal year ending June 30, 2024: Dial County general fund Eton City general fund Bart Township general fund Composite tax rate $ 60 30 10 $ 100 When collected, the property taxes are distributed to the governmental units. Dial County established a tax custodial fund to administer collection and distribution of taxes. Additional information: 1. To reimburse Dial County for administrative costs of operating the custodial fund, 2 percent of all tax collections are remitted to the Dial County general fund. 2. Tax bills sent out on July 1, 2023, for fiscal 2024, and estimated amounts to be collected are: Dial County Eton City Bart Township Totals Gross Levy Estimated Amount to be Collected $36,000,000 18,000,000 6,000,000 $ 60,000,000 $ 35,000,000 17,400,000 5,600,000 $ 58,000,000 3. As of September 30, 2023, the tax custodial fund received $14,400,000 in tax payments. On October 1, the tax custodial fund distributed the payments to the three governmental units. For all answers below, enter answers using all zeros (do not abbreviate to millions or thousands). a. Prepare the journal entries made in the tax custodial fund and in each of the three general funds to record the tax bills sent out July 1, 2023. Tax Custodial Fund Description Taxes receivable Debit 60,000,000 Credit 0 Additions 0 24,000,000 Deductions 0 0 Due to other governmental units 0 0 Dial County - General Fund Description Debit Credit Taxes receivable 2,000,000 x 0 Property tax revenue 0 0 Allowance for uncollectibletaxes 0 2,000,000 x Eton City - General Fund Description Debit Credit Taxes receivable 0 0 Property tax revenue 0 0 Allowance for uncollectible taxes 0 0 Bart Township - General Fund Description Debit Credit Taxes receivable 0 0 Property tax revenue 0 0 Allowance for uncollectible taxes 0 0 b. Calculate the amounts to be distributed to each of the three general funds on October 1, 2023. And then, c. Prepare the journal entries made in the tax custodial fund to record the tax collection. Prepare the journal entries made to record the distribution made by the tax custodial fund and by each of the three general funds to record receipt of payment on October 1, 2023. Tax Custodial Fund Description Debit Credit Cash 14,400,000 0 Taxes receivable 0 14,000,000 Due to other governmental units 0 0 Due to Dial County 0 0 Due to Eton City 0 0 0 0 Due to Bart Township To record collection of taxes. Due to Dial County 0 0 Due to Eton City 0 0 Due to Bart Township Cash To record distribution of taxes. 0 0 0 0 Record receipt of taxes from the Tax Custodial Fund. Dial County-General Fund Description Debit Credit Cash Taxes receivable Revenues 0 0 0 0 0 0 Eton City - General Fund Description Debit Credit Cash 0 0 Expenditures 0 0 Taxes receivable 0 0 Bart Township - General Fund Description Debit Credit Cash Expenditures 0 0 0 Taxes receivable 0 0 0