Journal entries for a Custodial Fund

The city of Belle collects property taxes for other local governmentsBeau 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. Prepare journal entries to record the following transactions and events for Belles Custodial Fund during calendar year 2019.

1. During 2019, property taxes were levied for Belle ($2,000,000), Beau County ($1,000,000) and LISD ($3,000,000). Assume taxes collected by the Custodial Fund will be paid to Belles General Fund.

2. Property taxes in the amount of $4,500,000 are collected. The percentage collected for each entity is in the same proportion as the original levy.

3. The amount owed to the city of Belle, Beau County, and LISD is recognized. The city of Belle charges an administrative fee to Beau County ($20,000) and LISD ($60,000) to collect the taxes, which reduces the amount owed to Beau County and LISD.

4. The Custodial Fund distributes the amount owed to the three governments.

Credit 07 07 2,000,000 4,000,000 0 Ref Description Property taxes receivable for city-current Property taxes receivable for other govern - Due to General Fund Additions-property taxes collected for other governments Cash Property taxes receivable for the city-current Property taxes receivable for other gover - 3 Deductions-administrative costs Deductions-property taxes distributed to Landis ISD Deductions-property taxes distributed to Beau County Due to General Fund Due to Landis ISD Due to Beau County 4. Due to General Fund Due to Landis ISD Due to Beau County Cash Debit 2,000,000 4,000,000 OV OV 4,500,000 OV o 80,000 ~ ov ov 0 OX 0x OX 0 1,500,000 3,000,000 07 0 ov 80,000 OX 0 0 0 0x