The City of Corvallis administers a Tax Agency Fund (AF) that bills and collects property taxes levied by the governing bodies of the Corvallis Consolidated School District (CSD), Benton County, and the Benton County Fire Protection District (FPD), in addition to those levied by the City of Corvallis for its General Fund (GF). (Note: Beginning in FY 2019, the tax agency fund will also account for property tax billing and collection for the City of Corvalliss debt service fund. That fund will not levy property taxes for FY 2018.) As permitted by state law, the City of Corvallis charges a collection fee of one percent of all taxes collected for the other governments.

Required: Open a general journal as of December 31, 2017, for the Tax Agency Fund (AF) by entering the two accounts and amounts shown in the above post-closing trial balance. Enter 2017 in the [Year] column. Each of the account titles will be found in the column [Account Name]. Be sure to enter 8-a as your paragraph number in the [Problem] column. (Note: Entries in this fund do not have to be recorded at the government-wide (GW) level. Fiduciary activity information is reported only in the fiduciary fund statements and not at the government-wide (GW) level.)

The following schedule shows the tax rates that have been established by the various taxing authorities for fiscal year 2018.

* 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 taxes levied by each government, which are also the total amounts billed by the Tax Agency Fund (AF) to all taxpayers in each jurisdiction. Record the following transactions that occurred during 2018 in the general journal of the Tax Agency Fund.

1 [8-b-1] On January 2, 2018, the citys tax administrator mailed annual tax bills to all property owners in the total amount of $10,617,213 (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. You need only record the grand total amount shown in the schedule above in the general journal, as illustrated in Chapter 8 of the Reck, Lowensohn, and Wilson text.

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

Required: Record the collections of delinquent taxes and interest and penalties by recognizing specific liabilities to each fund or government. The 1 percent collection fee applies to (and should be deducted from) the total amounts due to other governments; the total amount deducted from other governments should be added to the amount due to the City of Corvallis General Fund (GF).

(Note: Round all amounts to the nearest whole dollar.) Make these entries only in the Tax Agency Fund (AF) general journal. The Tax Agency Fund (AF) records the total amount of delinquent taxes and related interest and penalties in the Taxes Receivable for Other Funds and GovernmentsDelinquent account. So this problem will have two parts: -First you record the receipt of the total amount of cash and the reduction of the Taxes Receivable-Delinquent account. -Second, you are reclassifying the "Due to" amount from the general "Due to Other Funds and Governments" to record the specific liabilities "Due to" each of the governmental entities (including the General Fund's 1% collection fee).

Example:

If this were the only amount being collected the entry would be:

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

4 [8-b-4] Current taxes levied in 8-b-1 were collected during the year for the funds and governments shown below:

Required: Record the collections of current taxes and recognize specific liabilities to each fund or government, after deducting the 1 percent collection fee from other governments and adding the total collection fee to the amount due the City of Corvallis General Fund (GF). Make these entries only in the Tax Agency Fund (AF) general journal. See problem 8-b-2 for an example (except remember you are collecting current taxes receivable, not delinquent.)

Chart of Accounts:

Cash

Taxes Receivable for Other Funds and Governments-Current

Taxes Receivable for Other Funds and Governments-Delinquent

Due to Other Funds and Governments

Due to Corvallis General Fund

Due to Corvallis Consolidated School District

Due to Benton County

CITY OF Corvallis Tax Agency Fund (AF) Post-closing Trial Balance As of December 31, 2017 Debits 1,552,500 Credits Account Title Taxes Receivable for Other Funds and Governments-Delinquent (including related interest and penalties) Due to Other Funds and Governments Totals 1,552,500 1,552,500 1,552,500 Tax Rates Applicable to Governments Served by the Tax Agency Fund (AF) Fiscal Year 2018 (All amounts rounded to next higher dollar) Tax Rate (Per $100 Assessed of Assessed Valuation) Valuation Tax Levy $ $ 0.56 0.56 $ 203,033,990 $ 1,136,990 1,136,990 $ Governments/Funds City of Corvallis General Fund (GF) Total city rate and levy Corvallis CSD: General Fund (GF) Debt service fund Total CSD rate and levy Benton County: General Fund (GF) 2.45 0.14 2.59 $ $ 244,610,660 $ $ 244,610,660 $ $ 5.992.961 342,455 6,335,416 0.27 $ 307,310,470 $ 829,738 $ 0.33 0.60 $ 307,310,470 $ 1,014,125 1,843,863 County Road and Bridge Fund Total county rate and levy Benton County FPD: General Fund (GF) Fire Station Construction Fund Total county FPD rate and levy Grand Total tax rates and levies* 0.90 0.35 1.25 5.00 $ $ 104,075,550 $ 104,075,550 $ 936,680 364,264 1,300,944 10,617,213 $ Governments/Funds: City of Corvallis General Fund (GF) Corvallis CSD Benton County Benton County FPD Total collected Delinquent Interest and Taxes Penalties 241,260 $ 23,020 484,240 38,790 191,280 15,360 108,980 8,800 1,025,760 $ 85,970 Total 264,280 523,030 206,640 117,780 1,111,730 S $ Total Collected: 523,030 Corvallis CSD Credit to "Due to Corvallis CSD" account: 517,800 Less 1% Collection Fee:* (5,230) Part 1: Credit Record the cash receipt and reduction of the receivable: Debit Cash Taxes Receivable for Other Funds and Governments-Delinquent 523,030 523,030 523,030 Due to Other Funds and Governments Due to Corvallis Consolidated School District Due to Corvallis General Fund 517,800 5,230 Funds/Governments: City of Corvallis General Fund (GF) Corvallis CSD Benton County Benton County FPD Total collected Current Taxes Collected 1,102,880 6,272,060 1,733,230 1,248,910 10,357,080 CITY OF Corvallis Tax Agency Fund (AF) Post-closing Trial Balance As of December 31, 2017 Debits 1,552,500 Credits Account Title Taxes Receivable for Other Funds and Governments-Delinquent (including related interest and penalties) Due to Other Funds and Governments Totals 1,552,500 1,552,500 1,552,500 Tax Rates Applicable to Governments Served by the Tax Agency Fund (AF) Fiscal Year 2018 (All amounts rounded to next higher dollar) Tax Rate (Per $100 Assessed of Assessed Valuation) Valuation Tax Levy $ $ 0.56 0.56 $ 203,033,990 $ 1,136,990 1,136,990 $ Governments/Funds City of Corvallis General Fund (GF) Total city rate and levy Corvallis CSD: General Fund (GF) Debt service fund Total CSD rate and levy Benton County: General Fund (GF) 2.45 0.14 2.59 $ $ 244,610,660 $ $ 244,610,660 $ $ 5.992.961 342,455 6,335,416 0.27 $ 307,310,470 $ 829,738 $ 0.33 0.60 $ 307,310,470 $ 1,014,125 1,843,863 County Road and Bridge Fund Total county rate and levy Benton County FPD: General Fund (GF) Fire Station Construction Fund Total county FPD rate and levy Grand Total tax rates and levies* 0.90 0.35 1.25 5.00 $ $ 104,075,550 $ 104,075,550 $ 936,680 364,264 1,300,944 10,617,213 $ Governments/Funds: City of Corvallis General Fund (GF) Corvallis CSD Benton County Benton County FPD Total collected Delinquent Interest and Taxes Penalties 241,260 $ 23,020 484,240 38,790 191,280 15,360 108,980 8,800 1,025,760 $ 85,970 Total 264,280 523,030 206,640 117,780 1,111,730 S $ Total Collected: 523,030 Corvallis CSD Credit to "Due to Corvallis CSD" account: 517,800 Less 1% Collection Fee:* (5,230) Part 1: Credit Record the cash receipt and reduction of the receivable: Debit Cash Taxes Receivable for Other Funds and Governments-Delinquent 523,030 523,030 523,030 Due to Other Funds and Governments Due to Corvallis Consolidated School District Due to Corvallis General Fund 517,800 5,230 Funds/Governments: City of Corvallis General Fund (GF) Corvallis CSD Benton County Benton County FPD Total collected Current Taxes Collected 1,102,880 6,272,060 1,733,230 1,248,910 10,357,080