Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Journal entries for a Custodial Fund The city of Belle collects property taxes for other local governments - Beau County and the Landis Independent School

Journal entries for a Custodial Fund
The city of Belle collects property taxes for other local governments-Beau County and the Landis Independent School District (LISD). The city uses a Property Tax Collection Custodial Fund to account for its collection of property taxes for itself, Beau County, and LISD.
The following transactions and events occurred for Belle's Custodial Fund.
Property taxes were levied for Belle ( $1,000,000), Beau County ( $500,000) and LISD ( $1,500,000). Assume taxes collected by the Custodial Fund will be paid to Belle's General Fund.
Property taxes in the amount of $2,250,000 are collected. The percentage collected for each entity is in the same proportion as the original levy.
The amounts owed to Beau County and LISD are recognized.
The Custodial Fund distributes the amounts owed to the three governments.
Prepare journal entries to record the above transactions and events for Belle's Custodial Fund: If an entry affects more than one debit or credit account, enter the accounts in order of magnitude (largest to smallest balances), debits first.
\table[[Account,,Debit,Gredit],[Property taxes receivable for other governments-current,Y,1000000,],[Property taxes receivable for the city-current,v,2000000,],[Due to General Fund,,,1000000]]
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Auditing Practices In Africa

Authors: Mariaan Roos, Lesley Stainbank

1st Edition

1928357431, 978-1928357438

More Books

Students also viewed these Accounting questions