Property owners in the City of Ne pay property taxes that are earmarked, inpart, to provide debt service for the outstanding debt of the city. Property owners inthe city also provide debt service support for a share of the outstanding debt ofCenter Township and Delaware County, proportionate to the ratio of the assessedvaluation of property located within the city to that of all taxable property in thetownship and the county. The sum of the city's outstanding debt plus aproportionate share of the township and county's debt is referred to as:a. Total direct debt.b. Overlapping debt.c. Legal debt margin.d. Total general obligation debt outstanding.(ne)s

Total direct debt refers to the total amount of debt that a specific governmental entity, such as a…

Property owners in the City of N e pay prop part, to provide debt service for the outstanding the city also provide debt service support for a Center Township and Delaware County, propa valuation of property located within the city to t township and the county. The sum of the city's proportionate share of the township and count a. Total direct debt. b. Overlapping debt. c. Legal debt margin. d. Total general obligation debt outstanding.

Property owners in the City of N e pay prop part, to provide debt service for the outstanding the city also provide debt service support for a Center Township and Delaware County, propa valuation of property located within the city to t township and the county. The sum of the city's proportionate share of the township and count a. Total direct debt. b. Overlapping debt. c. Legal debt margin. d. Total general obligation debt outstanding.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The city of Belle collects property taxes for other local governments—Beau County and the Landis Independent School District (LISD). The city uses a Property Tax Collection Custodial Fund to account for its collection of property taxes for itself, Beau County, and LISD. The following transactions and events occurred for Belle's Custodial Fund. 1. Property taxes were levied for Belle ( $1,500,000), Beau County ( $750,000) and LISD ( $2,250,000). Assume taxes collected by the Custodial Fund will be paid to Belle’s General Fund. 2. Property taxes in the amount of $3,375,000 are collected. The percentage collected for each entity is in the same proportion as the original levy. 3. The amounts owed to Beau County and LISD are recognized. 4. The Custodial Fund distributes the amounts owed to the three governments. Prepare journal entries to record the above transactions and events for Belle’s Custodial Fund. If an entry affects more than one debit or credit account, enter the accounts in…
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