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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. 1. Property taxes were levied for Belle ( $4,000,000), Beau County ( $2,000,000) and LISD ($6,000,000). Assume taxes collected by the Custodial Fund will be paid to Belle's General Fund. 2. Property taxes in the amount of $9,000,000 are collected. The percentage collected for each entity is in the same proportion as the original levy. 3. The amounts owed to Beau County and LISD are recognized. 4. 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. Credit Debit 8,000,000 4.000.000 0 8.000.000 X 4.000.000 x 0 9.000.000 V 0 6.000.000 3.000.000 V 0 Account Property taxes receivable for other governments-current Property taxes receivable for the city-current Due to General Fund Additions-property taxes collected for other governments To record levy of property tax Cash Property taxes receivable for other governments-current Property taxes receivable for the city-current To record the collection of part of the property tax Deductions-property taxes distributed to Landis ISD Deductions-property taxes distributed to Beau County Due to Landis ISD Due to Beau County To record allocation of property taxes collected Due to Landis ISD Due to General Fund Due to Beau County Cash To record distribution of property taxes collected 120,000 40.000 OX 0 120.000 x V O 40.000 x 0 x 4.380.000 2.920.000 1.460.000 0x OX 8.750.000 x