Cameron County collects property taxes levied by the county for itself, the State, and the School District. The county receives 35% of the revenue, the State receives 55%, and the school district gets 10%. The county charges the other governments a collection fee equal to 1 1/2% of taxes collected for those entities. One percent of the property taxes have been uncollectible historically.

Transactions:

1. Property taxes are levied: $1,350,000 (don’t forget the portion that is expected to be uncollectible).
2. $1,300,000 in taxes are collected during the year.
3. All cash, less the collection fee, was remitted to the appropriate fund or entity.
4. The collection fee was remitted to the appropriate fund.

Requirement: Make the journal entries required in the Cameron County General Fund and Property Tax Custodial Fund to record the transactions. If no entry is required, state “No entry required” Do not make aggregate journal entries (separate the amounts due to and from the State and School District).

Cameron County Property Tax Custodial Fund

Cameron County General Fund