Assume that the general fund or the central tax collection agency fund records all taxes receivable, makes allowances for estimated uncollectible taxes receivable and collects taxes as an agent for the debt service fund. The general fund or the central tax collection agency fund transfers the

Question

Assume that the general fund or the central tax collection agency fund records all taxes receivable, makes allowances for estimated uncollectible taxes receivable and collects taxes as an agent for the debt service fund.
The general fund or the central tax collection agency fund transfers the amount of taxes collected to the debt service fund. The amount is not revenue of the general fund or the central tax collection agency fund but
instead is revenue of the debt service fund

Accepted Answer

In the Debt Service Fund (first year)
Required taxation                                                                  $16,379
Reserve for debt retirement    $16,379
To record debt service fund budget for the first year
In the General Fund
Taxes receivable $XXX
Estimated uncollectible taxes receivable    $XXXX
Revenue from taxes                                                                                     XXXX
Due to debt service fund 16,379
To record the tax assessment and levy, a part of which is revenue of the debt service fund

In the Debt Service Fund
Due from the general fund                                                   $16,379
Revenue from taxes                                                                            $16,379
To record claim from the general fund for debt service fund taxes collected by it
In the Tax Collection Agency Fund (if used)
Taxes receivable                                                                      $XXXX
Estimated uncollectible taxes receivable    $XXXX

Due to the general fund     XXXX
Due to the special revenue fund     XXXX
Due to debt service fund                                                                          16,379
To record tax assessment and levy and to distribute liability to each fund

In the Debt Service Fund (if a tax collection agency fund is used)
Due from tax collection agency fund $16,379
Revenue from taxes $16,379
To record claim for tax levy from the tax collection agency fund

Question 14.2: Assume that the general fund or the central tax collection a...

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