The City of Bingham administers a tax custodial fund that bills and collects property taxes levied by the governing bodies of the Bingham School District (BSD) and the Sunrise County Library (SCL), in addition to those levied by the City of Bingham for its General Fund and debt service fund. As permitted by state law, the City of Bingham charges a collection fee of 1 percent of all taxes collected for the other governments.

Account Title	Debits	Credits
Taxes Receivable for Other Funds and Governments—Delinquent (including related interest and penalties)	$1,684,422
Due to Other Funds		$ 548,562
Net Position—Restricted for Other Governments		1,135,860
Totals	$1,684,422	$1,684,422

Required

Open a general journal as of December 31, 2022, for the Tax Custodial Fund by entering the accounts and amounts shown in the above post-closing trial balance. Enter 2022 from the drop-down [Year] menu. Each of the account titles will be found in the drop-down menu[Account] in the [Journal] view of the program. Be sure to enter 8-a as your paragraph number in the [Add description] box. Verify the accuracy of your journal entry and post it to the general ledger by clicking [Post entries]. Unless your instructor specifies electronic submission, print a post-closing trial balance as of December 31, 2022 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 2023.

Governments/Funds	Tax Rate (Per $100 of Assessed Valuation)	Assessed Valuation	Tax Levy
City of Bingham:
General Fund	$0.55	$1,409,090,909	$7,750,000
Debt service fund	$0.55		704,545
Total city rate and levy	$0.60		$8,454,545
Bingham School District:
General Fund	$2.20	$570,782,907	$12,557,224
Debt service fund	0.10		570,783
Total SD rate and levy	$2.30		$13,128,007
Sunrise County Library:
General Fund	$0.90	$275,624,864	$2,480,624
Total SCL rate and levy	$0.90		$2,480,624
Grand Total tax rates and levies*	$3.80		$24,063,176

* Note: Each property owner will receive a tax bill equal to the tax rates of all taxing authorities that have jurisdiction over his/her property times the assessed valuation of his/her property. Shown above are the aggregate levied by each government, which are also the total amounts billed by the Tax Custodial Fund to all taxpayers in each jurisdiction.

Record the following transactions that occurred during 2023 in the general journal of the Tax Custodial Fund.

[Para. 8-b-1] On January 2, 2023, the city's tax administrator mailed annual tax bills to all property owners in the total amount of $24,063,176 (see preceding table). The tax administrator maintains a detailed tax ledger to track amounts billed to and collected from each taxpayer and total amounts applicable to each fund and government.

Required: Record the total amount for the city and the total amount for the other governments shown in the schedule above in the general journal, as illustrated in Chapter 8 of the textbook.

[Para. 8-b-2] Delinquent taxes and related interest and penalties were collected during the year for the taxing authorities shown below:

Governments/Funds:	Delinquent Taxes	Interest and Penalties	Total
City of Bingham General Fund	$378,000	$22,860	$400,860
City of Bingham debt service fund	9,900	630	10,530
City of Bingham debt service fund	9,900	630	10,530
Bingham School District	45,980	1,400	47,380
Sunrise County Library	16,435	759	17,194
Total collected	$450,315	$25,649	$475,964

Required: Record the collections of delinquent taxes and interest and penalties.

[Para. 8-b-3] The 1 percent collection fee was assessed on the Bingham School District and the Sunrise County Library collections.

Required: Calculate the 1 percent collection fee on the amounts due to other governments; the total collection fee from other governments should be recorded as Deductions—Administrative Fee and a Due to Other Funds for the amount due to the City of Bingham General Fund. (Note: Round all amounts to the nearest whole dollar.) All cash receipts and collection fees were recorded in earlier chapters in the journals for the General Fund, debt service fund, and governmental activities at the government-wide level. The collection fees, though not separately identified, were included in Revenues—Charges for Services in the General Fund and in Program Revenues—General Government—Charges for Services in governmental activities.

[Para. 8-b-4] All cash collected in paragraph 8-b-2 was transferred to the other funds and governments in the amounts calculated, adjusted for collection fees deducted or added (see Para. 8-b-3).

[Para. 8-b-5] Current taxes were collected during the year for the funds and governments shown below:

Funds/Governments:	Current Taxes Collected
City of Bingham General Fund	$ 7,302,000
Bingham debt service fund	695,500
Bingham School District	12,869,800
Central County Library	2,147,540
Total collected	$23,014,840

Required: Record the collections of current taxes, make these entries only in the Tax Custodial Fund general journal.

[Para. 8-b-6] The 1 percent collection fee was assessed on the Bingham School District and the Sunrise County Library collections.

Calculate the 1 percent collection fee on the amounts due to other governments; the total collection fee from other governments should be recorded as Deductions—Administrative Fee and a Due to Other Funds for the amount due to the City of Bingham General Fund. (Note: Round all amounts to the nearest whole dollar.) Make these entries only in the Tax Custodial Fund general journal.

[Para. 8-b-7] All cash collected in paragraph 8-b-5 was transferred to the other funds and governments, adjusted for collection fees deducted or added (see 8b-6).

[Para. 8-b-8] Make the year-end journal entry to reclassify all uncollected receivables as delinquent. Add to the receivable amount interest and penalties of $82,195 on the reclassified amount. The interest and penalties portion of the total amount should be debited to Taxes Receivable for Other Funds and Governments—Delinquent and credited to Due to Other Funds for the City of Smithville portion of $41,430 and Additions—Interest and Penalties Collections for Other Governments for the remaining $40,765.

[Para. 8-b-9] Make the year-end closing journal entry to close deductions and additions to Net Position—Restricted for Other Governments.

Post the journal entries for all the preceding transactions. Prepare closing entries to close the additions and deductions accounts.