Transcribed image text : OPTION #1: Custodial Fund Accounting Part A: The Snowflake County tax collector is responsible for collecting all property taxes levied by funds and governments within the boundaries of the county. The tax collector deducts 1.5 percent from the collections for the other entities to reimburse the county for estimated administrative expenses associated with maintaining the custodial fund. The total amount deducted is added to the collections for the county and remitted to the Snowflake County General Fund. 1. Current year tax levies to be collected by the custodial fund were: County General Fund $12,427,000 Town of Ski Slope General Fund 4,960,000 Snowflake County Consolidated School District 7,150,000 Other towns 3.240,000 $27,777,000 2. The tax collector collected $14,800,000 during the first half of the year. 3. Liabilities to all funds and governments as a result of the first half-year collections were recorded. (You will need to prepare a schedule of amounts collected for each participant, showing the amount withheld for the County General fund and net amounts due to participants to determine amounts to be recorded for this transaction.) 4. All cash in the custodial fund was distributed. 5. All additions and deductions were recorded by the custodial fund. Additions and deductions are aggregated because resources are held less than three months. Required: Prepare journal entries of each of the foregoing transactions that affected the tax custodial fund. Part B: 1. Although proprietary funds are often compared to for-profit organizations, there are several differences between financial reporting for proprietary funds and for-profit organizations. Identify and discuss differences between each of the proprietary fund financial statements and its corporate counterpart. 2. The Mountain County Sheriff's Office maintains a fund to which it transfers the phone company commissions it earns on inmates' pay-phone calls. The monies collected are used to provide inmate amenities such as books, magazines, writing paper and postage stamps. The resources of the fund are periodically transferred to the general fund, from which they are appropriated and expended. Should the fund be accounted for as a private-purpose trust fund (a fiduciary fund) or a government fund, such as a special revenue fund? Why? Required: Submit your responses to the Part B items in a 3-5-page Microsoft Word document. Ensure your responses are well-written