7-19. Information Technology Internal Service Fund. (L07-2) Washington City created an Information Technology department four years ago to centralize in formation technology (IT) functions for the city. The goal of the department was to reduce costs, avoid duplication of efforts, and provide up-to-date tech- nology 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 5 percent. The preclosing trial balance for the IT department as of last year, is shown below. 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) $14.500 4.250 350 53,600 $30.100 2.550 2,650 1.200 23,500 12.700 $72.700 $72.700 During the current fiscal year ended December 31. the following transactions (summarized) occurred: 1. Gross employee wages were $57,600. including the employer's share of Social Security taxes amounting to $4.100. Federal income and Social Security taxes withheld from that amount totaled $18,725. 2. Office expenses in the amount of $3.700 were paid in cash. 3. Materials and supplies purchased on account during the year were $8,400. 4. A bill totaling $14,525 was received for utilities provided by Washington City's utility fund. 5. Cash paid to the federal government for payroll taxes was $23,000. 6. Cash paid to the Utility Fund was $14,500. 7. Accounts payable at year-end totaled $2,950. 8. Materials and supplies used during the year were $8.250. 9. Charges to departments during the fiscal year were as follows: General Fund Special Revenue Fund $57,500 20.600 10. Unpaid balances at year-end were: General Fund Special Revenue Fund $3,500 1.800 11. The depreciation for the year was $6,100. 12. Revenue and expense accounts for the year were closed. Required a. Prepare a statement of revenues, expenses, and changes in fund net position for the Information Technology Fund for the current year ended December 31