Biology Forums - Study Force

Shelby County collects property taxes levied by the county for its General Fund. It also collects the taxes levied by two towns within the county—Ford's Way and Foote’s Corner. The county charges the towns a collection fee equal to 1% of taxes collected for those entities. Two percent of the property taxes have been uncollectible historically. All amounts are in thousands of dollars.

Transactions:

1.   Taxes levied for 20X6 were $12,000 for the county, $5,000 for Ford's Way, and $3,000 for Foote’s Corner.
2.   During the year tax collections for the county totaled $9,000, $4,000 was collected for Ford’s Way, and $2,200 was collected for Foote’s Corner.
3.   One percent of the gross taxes receivable were written off as uncollectible during the year.
4.   All cash collected, less the collection fee, was remitted to the appropriate fund or entity.
5.   The collection fee was remitted to the appropriate fund or entity.

Requirement:   Prepare the entries required in the Shelby County General Fund and in the Shelby County Tax Agency Fund to record the transactions. If no entry is required, state “No entry required” and explain why.
 

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