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 District (LSD).

image text in transcribed
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 (LSD). 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 Belle's 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 Belle's 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. Support Credit 2.000.000 4000,000 4. The Custodial Fund distributes the amount owed to the three governments. Description Debit 1 Property taxes receivable for city current 2,000,000 Property taxes receivable for other governments current 4,000,000 Due to General Pund Addition property taxes collected for other governments 2 Cash 4,500,000 Property taxes receivable for the city current O Property taxes receivable for other governments current Deductions-administrative cont 30 Deduction property taxes distributed to Landis 15 60 000 X Deduction property taxes distributed to Beau County 20,000 x Due to General Pund Dueto Lands 150 Due to County Due to General Fund Due to a 2.190.000 Due to De County 730.000 Cash 1.500.000 3.000.000 Real 0 000 50,000 Malware p App block 40 000

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

Managerial Accounting For Undergraduates

Authors: James Wallace, Scott Hobson, Theodore Christensen

2nd Edition

1618533096, 9781618533098

More Books

Students also viewed these Accounting questions

Question

3.4 Define HRIS and describe its main components.

Answered: 1 week ago