Tax agency fund discussion
Business Finance
Please respond in Word to the following exercise:
- In your own words, distinguish the types of scenarios where a tax agency fund would apply from scenarios where a tax agency fund would not apply. Please provide two or more examples of both situations. What are the legal implications of a tax agency relationship?
Using the fact scenario below, please respond in Excel to the following two exercises:
- Prepare the journal entries to reflect the transactions on the City of San Francisco’s books.
- Prepare the journal entries to reflect the transactions on each recipient county’s books.
Facts:
The City of San Francisco assesses a 15-cent telecommunications tax per call on calls initiated and terminated within the jurisdiction. During 2017, there were approximately 978,000,000 calls upon which the tax should be imposed. In addition, the city also collects sales taxes for the 3 counties that are part of incorporated San Francisco. Those taxes collected are $12,000,000 for County A, $7,500,000 for County B, and $4,130,000 for County C. Assume the amount of both taxes assessed were collected in their entirety. Fees for the collection services are 2% of tax collected. Residual cash after the fees assessed was disbursed to the counties.
Paper Requirements:
Submit your responses to the questions in a 3-4-page document in MS Word plus MS Excel documents as indicated. Label each question clearly. For written answers, please make sure your responses are well written. APA the use of subheadings, 1” margins, and double-spaced. The required number of pages for the assignment does not include the title page and references page. References from 3 credible academic sources. Sources used must be referenced; paraphrased and quoted material must have accompanying citations and cited per APA guidelines.
