Prepare the journal entries to record tax collections

Assignment Help Financial Accounting

Reference no: EM13166466

1.On January 1, Forrester County is holding investments for Tinsel Town valued at $800,000 in an investment pool, accounted for in an investment trust fund. On January 1, Valley School District invests $2,000,000 in the pool. Earnings on pooled investments for the six months ended June 30 totaling $400,000 were received in cash.

Required

1) What percentage interest in the pool is held by the town and the school district?

(a) Show the entry in the Investment Trust Fund to record the School District's investment in the pool.

(b) Show the entry in the Investment Trust Fund to summarize the collection of interest for the six-month period.

(c) show the entry in the Investment Trust Fund to record the distribution of the interest earned on pooled investments, assuming that the interest will be reinvested by the town and school district.

(d) in June 30, the forrester county general fund itself invested in the investment pool 400,000. Please show the entry in both the general fund and investment trust fund?

2. Kirby County established a tax agency fund to collect property taxes for the City of Kix, the City of Denton, and Kirby County School District. Total tax levies of the three governmental units were $280,000 for the year, of which $70,000 was for the City of Kix, $50,000 for Denton, and $160,000 for the School District. The tax agency fund charges a 3% collection fee that it transfers to the general fund of the County in order to cover costs incurred for agency fund operations. During the year the tax agency fund collected and remitted $200,000 of the $280,000 levies to the various governmental units. Collection fees associated with the $200,000 were remitted to Kirby County's general fund prior to year end.

Required

Prepare the journal entries to record tax collections and remittances for the Kirby County Tax Agency Fund.

Reference no: EM13166466

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