GOVERNMENTAL ACCOUNTING FOR A TAX CUSTODIAL FUND.....NOT A TAXATION QUESTION.

Chapter 8 Recording Transactions Affecting a Fiduciary Fund-a 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 Account Title Taxes Receivable for Other Funds and Debits $1,977,075 Governments-Delinquent (including related interest and penalties) $1.977.075 S1.977,075 $1,977075 Due to Other Funds and Governments Totals Required 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. a. Enter 2020 from the drop-down IYearl menu. Each of the account titles will be found n the drop down menu JAccount] in the IJournal] 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 IPost 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. The following schedule shows the tax rates that have been established by the various taxing authorities for fiscal year 2020. b. Chapter 8 Recording Transactions Affecting a Fiduciary Fund-a 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 Account Title Taxes Receivable for Other Funds and Debits $1,977,075 Governments-Delinquent (including related interest and penalties) $1.977.075 S1.977,075 $1,977075 Due to Other Funds and Governments Totals Required 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. a. Enter 2020 from the drop-down IYearl menu. Each of the account titles will be found n the drop down menu JAccount] in the IJournal] 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 IPost 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. The following schedule shows the tax rates that have been established by the various taxing authorities for fiscal year 2020. b