Exercise 7-19 (Static) Information Technology Internal Service Fund [LO 7-2] 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 5 percent. The preclosing trial balance for the IT department as of last year, is shown below. During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) 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: 10. Unpaid balances at year-end were: 11. The depreciation for the year was $6,100. 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.) 3-2. 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 i thousands of dollars.) 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.) a-3. Prepare a statement of revenues, expenses, and changes in fund net position for the Information Technology Fund for t current year ended December 31. (Enter your answers in thousands of dollars.) b. Prepare a statement of net position for the Information Technology Fund as of December 31 . (Enter your answers in thousands of dollars.) 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.) Exercise 7-19 (Static) Information Technology Internal Service Fund [LO 7-2] 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 5 percent. The preclosing trial balance for the IT department as of last year, is shown below. During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) 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: 10. Unpaid balances at year-end were: 11. The depreciation for the year was $6,100. 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.) 3-2. 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 i thousands of dollars.) 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.) a-3. Prepare a statement of revenues, expenses, and changes in fund net position for the Information Technology Fund for t current year ended December 31. (Enter your answers in thousands of dollars.) b. Prepare a statement of net position for the Information Technology Fund as of December 31 . (Enter your answers in thousands of dollars.) 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.)
