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.
Current year tax levies to be collected by the custodial fund were:
1. Custodian Fund Tax Levies
Account Tax Levies
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
The tax collector collected $14,800,000 during the first half of the year.
Liabilities to all funds and governments because 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.)
All cash in the custodial fund was distributed.
All additions and deductions were recorded by the custodial fund. Additions and deductions are aggregated because resources are held for less than three months.
Required:
prepare journal entries in an excel spreadsheet each of the foregoing transactions
that affected the tax custodial fund. Label each section clearly based on the
numbered bullets above. Include computations in a table and show work.
PART B
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.
The Snowflake 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?
In recent years tourism in the cities of Texas operate municipal golf courses where it has fallen at a loss of $1 million per year. Supporters state that it’s part of the Parks and Recreation departments where it’s beneficial to the community where others criticized local governments for injecting money into it and that it be funded through user charges. What are some options you would suggest for the cities and what questions would be associated with the alternatives that you provide?
REQUIRED:
PowerPoint presentation of 2-3 slides, using speaker notes, not counting the title and reference list pages.
Include at least 2 credible references
References;
https://students.aiu.edu/submissions/profiles/resources/onlineBook/U8b9v5_Accounting_for_Governmental_and_Nonprofit_Entities-_15.pdf
