Arens 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 2015, the following taxes were levied:

1. $8,820,000 in property taxes were levied for the General Fund, of which 2% are deemed to be uncollectible

. 2. $4,830,000 in property taxes were levied for the school district.

3. $4,410,000 in property taxes were levied for a village in the county.

Required: Part A - Prepare the journal entries for each unit and the Agency Fund to record these levies.

Part B - The agency fund then collected 90% of the levy for each fund. The Arens 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.

Answer: Part A (The Arens County General Fund has been completed for you) Arens County General Fund Taxes ReceivableCurrent 8,820,000 Estimated Uncollectible Current Taxes 176,400 Revenues Control 8,643,600 School District General Fund Village General Fund Arens County Tax Agency Fund Part B (The Arens County Tax Agency Fund has been completed for you)

Arens County Tax Agency Fund Cash 8,316,000 Taxes Receivable for Other Governments Current 8,316,000 (cash collections for the county taxes would be recorded directly in the GF) Due to Other Governments 8,316,000 Due to Arens County General Fund 124,740 Due to School District 4,281,795 Due to Village 3,909,465 Arens County General Fund

School District General Fund

Village General Fund