Answer:
<u>In the Book of Benton County:</u>
a. Debit Cash Account for $40,000,000; Credit Property Tax for $25,000,00; and Credit Tax Collection Custodial Fund for $15,000,000.
b. Debit Tax Collection custodial Fund Account for $15,000,000; Credit School District Account for $12,500,000; and Credit Towns Account for 2,500,000.
c. Debit School District Account for $12,500,000; Debit Towns Account for $2,500,000; and Credit Cash Account for $15,000,000.
<u>In the Books of School Districts Accounts:</u>
a. Debit Benton County Accounts for $12,500,000; and Credit Property Tax Account for $12,500,000.
b. Debit Cash Account for $12,500,000; and Credit Benton County Accounts for $12,500,000.
<u>In the Books of Towns Accounts:</u>
a. Debit Benton County Accounts for $2,500,000; and Credit Property Tax Account for $2,500,000.
b. Debit Cash Account for $2,500,000; and Credit Benton County Accounts for $2,500,000.
Explanation:
Note: See the attached excel for how the journal entries will look together with the explanation.
