2. On July 1, 2016, the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par) value of $1,600,000. Income is to be used to make awards for civic achievements. As of the date of the gift, the securities had a market value of $1,668,000. Included in this amount is accrued interest of $18,000. The bonds carried an annual interest rate of 5%, payable semiannually on April 1 and October 1. During the fiscal year ended June 30, 2017, the following transactions took place: 1. The gift was received. 2. On October 1, $40,000 in interest was received. 3. On April 1, $40,000 in interest was received. On April 1, immediately after the receipt of interest, the XYZ bonds were sold for $1,662,000. The proceeds were invested in ABC bonds, which pay interest semiannually on April 1 and October 1. The bonds were purchased at par value. 5. On June 30, 2017, accrued interest of $ 20,775 on the ABC bonds was recognized. 6. On June 30, 2017, awards were made in the amount of $75,000. 7. As of June 30, 2017, the fair value of the fair value of the ABC bonds was $1,664,000, exclusive of accrued interest. 3. Onondaga County maintains a tax agency fund for use by the County Treasurer to record receivables, collections, and disbursements of all property tax collections to all units of government in the county. In the year 2017, the following taxes were levied: 1. $9,000,000 in property taxes were levied for the General Fund, of which 2% are deemed to be uncollectible. 2. $5,830,000 in property taxes were levied for the school district. 3. $5,410,000 in property taxes were levied for a village in the county. Required: A. Prepare the journal entries for each unit and the Agency Fund to record these levies. B. The agency fund then collected 90% of the levy for each fund. The Onondaga County General Fund charges 1.5% of collections as a fee for maintaining the agency fund. Prepare the journal entries for each unit and the Agency Fund to record these collections and fees. Page 2. On July 1, 2016, the City of Corfu received a gift of debt securities of XYZ Company with a nominal (par) value of $1,600,000. Income is to be used to make awards for civic achievements. As of the date of the gift, the securities had a market value of $1,668,000. Included in this amount is accrued interest of $18,000. The bonds carried an annual interest rate of 5%, payable semiannually on April 1 and October 1. During the fiscal year ended June 30, 2017, the following transactions took place: 1. The gift was received. 2. On October 1, $40,000 in interest was received. 3. On April 1, $40,000 in interest was received. On April 1, immediately after the receipt of interest, the XYZ bonds were sold for $1,662,000. The proceeds were invested in ABC bonds, which pay interest semiannually on April 1 and October 1. The bonds were purchased at par value. 5. On June 30, 2017, accrued interest of $ 20,775 on the ABC bonds was recognized. 6. On June 30, 2017, awards were made in the amount of $75,000. 7. As of June 30, 2017, the fair value of the fair value of the ABC bonds was $1,664,000, exclusive of accrued interest. 3. Onondaga County maintains a tax agency fund for use by the County Treasurer to record receivables, collections, and disbursements of all property tax collections to all units of government in the county. In the year 2017, the following taxes were levied: 1. $9,000,000 in property taxes were levied for the General Fund, of which 2% are deemed to be uncollectible. 2. $5,830,000 in property taxes were levied for the school district. 3. $5,410,000 in property taxes were levied for a village in the county. Required: A. Prepare the journal entries for each unit and the Agency Fund to record these levies. B. The agency fund then collected 90% of the levy for each fund. The Onondaga County General Fund charges 1.5% of collections as a fee for maintaining the agency fund. Prepare the journal entries for each unit and the Agency Fund to record these collections and fees. Page