10 ! 3 points Return to question Required information [The following information applies to the questions displayed below.] The Town of Elizabeth operates an old train station as an enterprise fund. The train station is on the national register of historic buildings. Because the town has held the building for such a long time, the Central Station Fund has no long- term debt. The only capital assets recorded by the Central Station Fund are machinery and equipment. Businesses and individuals rent space in the building for private events, and the town provides all services related to the operation and maintenance of the building. Following is information related to the fund's operating activities. 1. Rental income of $94,584 was accrued based upon reservations. 2. Cash in the amount of $90,346 was received on accounts. 3. Cash expenses for the period included administrative services, $25,243; maintenance and repairs, $72,992; and utilities, $30,164. 4. The Central Station Fund was awarded a $11,000 grant for historic preservation. All eligibility requirements were met within the year, but the cash had not been received at year-end. The grant is considered operating revenue. 5. The Central Station Fund received a $70,000 transfer of funds from the General Fund. 6. An adjusting entry was made for depreciation of $3,523. 7. At the end of the period, nominal accounts were closed. Required a. Prepare general journal entries to record the Central Station Fund's operating activities for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) Return to question 10 Required a. Prepare general journal entries to record the Central Station Fund's operating activities for the year. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) 3 points > Answer is complete but not entirely correct. No Transaction A 01 Accounts Receivable Rental Income B 02 Cash Accounts Receivable General Journal Debit Credit 94,584 94,584 90,346 90,346 C 03 Administrative Services Expense 25,243 Maintenance and Repairs Expense 72,992 Utilities Expense 30,164 Cash D 04 Grants Receivable Grant Revenue 128,399 11,000 11,000 E 05 Cash 70,000 Interfund Transfer In 70,000 F 06 Depreciation Expense Allowance for Depreciation G 07 Rental Income Interfund Transfer In Grant Revenue Maintenance and Repairs Expense Administrative Services Expense Utilities Expense Depreciation Expense Net Position-Unrestricted 3,523 3,523 94,584 70,000 11,000 25,243 x 72,992 x 30,164 3,523 43,662 7 Washington City created an Information Technology department four years ago to centralize information technology (IT) functions for the city. The goal of the department was to reduce costs, avoid duplication of efforts, and provide up-to-date technology to all of the city's operations. The fund was designed to be self-supporting; that is, all costs are to be recovered through user fees, but any excess of fees over expenses should be less than 4 percent. The preclosing trial balance for the IT department as of last year, is shown below. 5 points Cash Due from Other Funds Materials and Supplies Inventory Machinery and Equipment Accumulated Depreciation Accounts Payable Due to Federal Government Due to Other Funds Net Position-Net Investment in Capital Assets Net Position-Unrestricted Debits Credits (in thousands) $ 14,000 4,110 360 52,700 $29,800 1,760 2,640 1,170 22,900 12,900 $ 71,170 $ 71,170 During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred: 1. Gross employee wages were $56,700, including the employer's share of social security taxes amounting to $4,040. Federal income and social security taxes withheld from that amount totaled $18,460. 2. Office expenses in the amount of $3,670 were paid in cash. 3. Materials and supplies purchased on account during the year were $8,330. 4. A bill totaling $14,410 was received for utilities provided by Washington City's utility fund. 5. Cash paid to the federal government for payroll taxes was $22,800. 6. Cash paid to the Utility Fund was $14,000. 7. Accounts payable at year-end totaled $2,930. 8. Materials and supplies used during the year were $8,210. 9. Charges to departments during the fiscal year were as follows: General Fund Special Revenue Fund $57,200 20,400 10. Unpaid balances at year-end were: General Fund Special Revenue Fund $3,500 1,900 11. The depreciation for the year was $6,000. 12. Revenue and expense accounts for the year were closed. Required a-1. Prepare journal entries for the Information Technology Fund for the current year ended December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) 5 7 Required a-1. Prepare journal entries for the Information Technology Fund for the current year ended December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) points No A Transaction 1 Answer is not complete. General Journal Debit Credit 57,200 2,400 71,170 Wage Expense Payroll Tax Expense Due to Federal Government Cash B 2 Office Expenses 0 3 Cash Materials and Supplies Inventory Accounts Payable D 4 Utility Expense Due to Other Funds E 5 F 6 G 7 H 8 9 11 10 K 11 Due to Federal Government Cash Due to Other Funds Cash Accounts Payable Cash Cost of Materials and Supplies Used Materials and Supplies Inventory Due from Other Funds Billings to Departments Cash Due from Other Funds Depreciation Expense Allowance for Depreciation 00 00 00 00 00 00 00 00 00 7 5 points a-2. Prepare closing entry for the Information Technology Fund for the current year ended December 31. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Enter your answers in thousands of dollars.) No A Transaction 12(a) B 12(b) Answer is not complete. General Journal Debit Credit Billings to Departments Excess of Cost Over Net Billings to departments Wage Expense Office Expenses Utility Expense Cost of Materials and Supplies Used Depreciation Expense Payroll Tax Expense Net Position-Unrestricted Excess of Cost Over Net Billings to departments 12(c) Net Position-Net Investment In Capital Assets Net Position-Unrestricted a-3. Prepare a statement of revenues, expenses, and changes in fund net position for the Information Technology Fund for the current year ended December 31. (Enter your answers in thousands of dollars.) Answer is not complete. WASHINGTON CITY Information Technology Fund Statement of Revenues, Expenses, and Changes in Fund Net Position Billings to Departments For the Year Ended December 31 Operating Expenses: Wage Expense Office Expenses Utility Expense Cost of Materials and Supplies Used Depreciation Expense Payroll Tax Expense Total Operating Expenses Operating Loss Net Position, January 1 Net Position, December 31 0 0 0 5 7 points b. Prepare a statement of net position for the Information Technology Fund as of December 31. (Enter your answers in thousands of dollars.) Answer is not complete. WASHINGTON CITY Information Technology Fund Statement of Net Position As of December 31 Assets Current Assets: Cash Due from Other Funds Materials and Supplies Inventory Total Current Assets Capital Assets: Machinery and Equipment Less: Allowance for Depreciation Total Capital Assets Total Assets Liabilities Accounts Payable Due to Federal Government Due to Other Funds Total Current Liabilities Net Position Net Position-Net Investment in Capital Assets Net Position-Unrestricted Total Net Position $ 0 0 0 0 $ 0 c. Prepare a statement of cash flows for the Information Technology Fund for the current year ended December 31. (Cash outflows should be indicated by a minus sign. Enter your answers in thousands of dollars.) Answer is not complete. WASHINGTON CITY Information Technology Fund Statement of Cash Flows For the Year Ended December 31 Cash Flows from Operating Activities: Cash Received from Customers Cash Paid To: Employees Other Departments Suppliers Federal Government 0000 Net Cash Provided by Operations Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents, 01/01 0 $ 0 0 Cash and Cash Equivalents, 12/31 Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income/(Loss) Adjustments: Depreciation Expense-Machinery and Equipment $ 0 Increase in Inventory Increase in Receivables from Other Funds Increase in Accounts Payable Decrease in Due to Federal Government Increase in Due to Other Funds Net Cash Provided by Operating Activities $ 0 d. Has the manager of the IT department been able to achieve the goal of recovering costs through user fees? Yes No