ACCOUNTING F/GOV.+NON...(LL)
18th Edition
ISBN: 9781266785580
Author: RECK
Publisher: MCG
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Chapter 8, Problem 25EP
Fiduciary Fund Financial Statements. (LO8-4) Mantee County administers a pension fund and a postretirement benefits fund for some of its workers, an investment trust fund for itself and three other governments, a private-purpose trust fund to award low-income scholarships for students in the tri-county area (the fund has an endowment of $2 million), and a tax custodial fund for itself and four other governments.
Required
This is the first time Mantee County has prepared its operating statement for the fiduciary funds under the GASBS 84 requirements. However, it does not appear to be in conformance with the new standard. Identify the errors in the statement and explain how the errors can be corrected.
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The county collector of Sun County is responsible for collecting all property taxes levied by funds and governments within
the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax
custodial fund, the custodial fund deducts 4 percent from the collections for the town, the school district, and the other
towns. The total amount deducted is added to the collections for the county and remitted to the Sun County General
Fund.
The following events occurred during the year:
1. Current-year tax levies to be collected by the custodial fund were
County General Fund
Town of Bayshore
Sun County Consolidated School District
Total
$10,473,000
4,910,000
6,620,000
$22,003,000
2. During the year, $13,840,000 of the current year's taxes was collected.
3. The 4 percent administrative collection fee was recorded. A schedule of amounts collected for each…
Required information
[The following information applies to the questions displayed below.]
The county collector of Sun County is responsible for collecting all property taxes levied by funds and governments within
the boundaries of the county. To reimburse the county for estimated administrative expenses of operating the tax
custodial fund, the custodial fund deducts 2 percent from the collections for the town, the school district, and the other
towns. The total amount deducted is added to the collections for the county and remitted to the Sun County General
Fund.
The following events occurred during the year:
1. Current-year tax levies to be collected by the custodial fund were
County General Fund
Town of Bayshore
Sun County Consolidated School District
Total
$ 7,664,480
5,508,845
10,778,175
$23,951,500
2. During the year, $20,358,000 of the current year's taxes was collected.
3. The 2 percent administrative collection fee was recorded. A schedule of amounts collected for each…
CO G) Kirby County established a tax custodial fund to collect property taxes for the City of Kix, the City of Denton, and Kirby County Independent School District. Total tax levies of the three governments were $200,000 for the year, of which $60,000 was for the City of Kix, $40,000 for Denton, and $100,000 for the school district.
The tax custodial fund charges a 2% collection fee that it transfers to the general fund of the county in order to cover costs incurred for custodial fund operations. During the year, the tax custodial fund collected and remitted $150,000 of the $200,000 levies to the various governments. Collection fees associated with the $150,000 were remitted to Kirby County's general fund prior to year-end.
For the Kirby County Tax Custodial Fund, prepare the journal entries to record the taxes collected during the year and the remittances made to participating governments. (If no entry is required for a transaction or event, select No Journal Entry Required in the…
Chapter 8 Solutions
ACCOUNTING F/GOV.+NON...(LL)
Ch. 8 - What are the criteria for determining if a...Ch. 8 - Prob. 2QCh. 8 - Identify the different types of trust funds and...Ch. 8 - Describe the basic activities conducted by a tax...Ch. 8 - Explain how the financial reporting of fiduciary...Ch. 8 - Prob. 6QCh. 8 - How are external investment pool activities...Ch. 8 - What is a private-purpose trust fund? There are...Ch. 8 - Prob. 9QCh. 8 - Prob. 10Q
Ch. 8 - What is OPEB and how is OPEB reported by...Ch. 8 - Prob. 12CCh. 8 - Prob. 13CCh. 8 - Prob. 14CCh. 8 - Prob. 15CCh. 8 - Prob. 17.1EPCh. 8 - Which of the following is not a fiduciary fund? a....Ch. 8 - Prob. 17.3EPCh. 8 - Fiduciary fund activities are not included in the...Ch. 8 - Prob. 17.5EPCh. 8 - Prob. 17.6EPCh. 8 - The city has installed sidewalks using special...Ch. 8 - Prob. 17.8EPCh. 8 - Fiduciary funds a. Are accounted for using the...Ch. 8 - Prob. 17.10EPCh. 8 - Prob. 17.11EPCh. 8 - An investment trust fund would report in the...Ch. 8 - Prob. 17.13EPCh. 8 - Which pension fund financial statement or schedule...Ch. 8 - Prob. 17.15EPCh. 8 - Prob. 18.1EPCh. 8 - Prob. 18.2EPCh. 8 - The county collects taxes on behalf of the county,...Ch. 8 - Prob. 18.4EPCh. 8 - Prob. 18.5EPCh. 8 - At the date of the creation of the investment...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - The city council of the City of Great Falls...Ch. 8 - Prob. 18.9EPCh. 8 - Prob. 18.10EPCh. 8 - Tax Custodial Fund. (LO8-2) The county collector...Ch. 8 - Special Assessment Debt. (LO8-2) Residents of...Ch. 8 - Identification of Fiduciary Funds. (LO8-2, LO8-3,...Ch. 8 - Investment Trust Fund. (LO8-3) The Albertville...Ch. 8 - Pass-through Custodial Funds. (LO8-2) Evergreen...Ch. 8 - Fiduciary Financial Statements. (LO8-4) Ray County...Ch. 8 - Fiduciary Fund Financial Statements. (LO8-4)...Ch. 8 - Prob. 26EPCh. 8 - Prob. 27EP
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