Custodial Fund

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, 2015. A composite property tax rate per $1,000 of assessed valuation was developed for the fiscal year ending June 30, 2016:

Dial County general fund	$ 60
Eton City general fund	30
Bart Township general fund	10
Composite tax rate	$ 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, 2015, for fiscal 2016, and estimated amounts to be collected are:

   	Gross Levy	Estimated Amount to be Collected
   Dial County	$ 54,000,000	$ 52,500,000
   Eton City	27,000,000	26,100,000
   Bart Township	9,000,000	8,400,000
   Totals	$ 90,000,000	$ 87,000,000

3. As of September 30, 2015, the tax custodial fund received $21,600,000 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).

b. Calculate the amounts to be distributed to each of the three general funds on October 1, 2015. 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, 2015.

Record receipt of taxes from the Tax custodial fund.