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Chapter 8 Recording Transactions Affecting a Fiduciary Funda Tax Custodial Fund The City of Smithville administers a tax custodial fund that bills and collects property

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Chapter 8 Recording Transactions Affecting a Fiduciary Funda Tax Custodial Fund The City of Smithville administers a tax custodial fund that bills and collects property taxes levied by the governing bodies of the Smithville Consolidated School District (CSD), Smith County, and the Smith County Fire Protection District (FPD), in addition to those levied by the City of Smithville for its General Fund. (Note: Beginning in FY 2021, the tax custodial fund will also account for property tax billing and collection for the City of Smithville's debt service fund. That fund will not levy property taxes for FY 2020.) As permitted by state law, the City of Smithville charges a collection fee of 1 percent of all taxes collected for the other governments. CITY OF SMITHVILLE Tax Custodial Fund Post-closing Trial Balance As of December 31, 2019 Credits Debits $1,977,075 Account Title Taxes Receivable for Other Funds and Governments-Delinquent (including related interest and penalties) Due to Other Funds and Governments Totals $1.977,075 $1.977.075 $1.977,075 Required a. Open a general journal as of December 31, 2019, for the Tax Custodial Fund by entering the two accounts and amounts shown in the above post-closing trial balance. Enter 2020 from the drop-down Year] menu. Each of the account titles will be found in the drop down menu Account in the Journal view of the program. Be sure to enter 8-a as your paragraph number in the [Add description field. Verify the accuracy of your journal entry and post it to the general ledger by clicking (Post entries). Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2019 and retain it in your cumulative file until directed by your instructor to submit it. (Note: Entries in this fund are not recorded at the government-wide level. Fiduciary activity information is reported only in the fiduciary fund statements and not at the government-wide level.]

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