80.2K

Verified Solution

Link Copied!

Property taxes collected by funds and governments within county boundaries are used to refund Jonesboro County for expenses related to operating the tax agency fund. Each town and the school districts have a 1.5% deduction by the agency fund. The total deduction for the county is transferred to the Jonesboro County General Fund after collections are made. During 20X7, the following county tax amounts were collected: County General Fund, $10,333,000; Jonesboro City General Fund, $4,840,000; Jonesboro County Consolidated School District, $6,550,000; Other towns, $3,120,000. The total amount collected from the different sources was $24,843,000. During the first half of 20X7, $13,700,000 was collected for current taxes and fund and government liabilities were recorded. Prepare a schedule of collections for each participant showing the county General Fund amounts withheld and net due to participants. Tax agency fund cash was assigned. Required: Prepare journal entries for each of the above transactions that altered the tax agency fund. Assuming 4% of the gross tax levy will be uncollectible, prepare the journal entries that pertain to the Jonesboro County General Fund. Assuming 2% of the gross levy for Jonesboro City will be uncollectible, prepare the journal entries to record the transactions that affect the Jonesboro City General Fund. What financial statements are required to be prepared by the tax agency fund? Compare the financial statement requirements from the United States with at least two other countries. Would the same financial statements be used and why?

Answer & Explanation Solved by verified expert

See Answer