a-1.	Prepare journal entries for the Information Technology Fund for 2017

Chapter 7 Practice Washington City created an Information Technology department in 2013 to centralize information technology (IT) functions for the city. The goal of the department was to reduce costs, avoid duplication of efforts, and provide upto-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 5%. The pre-closing trial balance for the IT department as of December 31, 2017 is shown below. Cash Due from Other Funds Material s and Supplies Inventory Machin ery and Equipme nt Accumu lated Depreciat ion Account s Payable Payroll Taxes Payable Due to Other Funds Net Position - Net Investme nt in Capital Assets Net Position - Unrestric ted $ Debits 14,500 Credits 4,250 350 53,600 $ 30,100 2,550 2,650 1,200 23,500 12,700 $ 72,700 $ 72,700 During the fiscal year ended December 31, 2017, 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. Received a bill totaling $14,525 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 10. Unpaid balances at year end were: General Fund Special Revenue Fund 11. 12. $57,500 20,600 $ 3,500 1,800 The depreciation for the year was $6,100. Revenue and expense accounts for the year were closed a-1. Prepare journal entries for the Information Technology Fund for 2017. 1) 2) 3) 4) 5) 6) 7) 8) 9) 10) 11) a-2. Prepare closing entry for the Information Technology Fund for 2017. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field.) a-3. Prepare a statement of revenues, expenses, and changes in net position for the Information Technology Fund for 2017. b. Prepare a statement of net position for the Information Technology Fund as of December 31, 2017. c. Prepare a statement of cash flows and reconciliation of operating income to net cash provided by operations for the Information Technology Fund as of December 31, 2017. (Negative amounts should be indicated by a minus sign.) d. Has the manager of the IT department been able to achieve the goal of recovering costs through user fees? Yes or NO