The City of Kent established a self-supporting department a few years ago to centralize purchase for the government. The mission is to reduce costs and avoid duplication of efforts. All costs will 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. 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) $ 14,600 4,730 410 54,700 $ 31,000 2,690 2,740 1,210 23,700 13,100 $ 74,440 $ 74,440 During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred: During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred: 1. Gross employee wages were $60,600, including the employer's share of social security taxes amounting to $4,310. Federal income and social security taxes withheld from that amount totaled $19,700. 2. Office expenses in the amount of $3,910 were paid in cash. 3. Materials and supplies purchased on account during the year were $8,880. 4. A bill totaling $15,350 was received for utilities provided by Washington City's utility fund. 5. Cash paid to the federal government for payroll taxes was $24,200. 6. Cash paid to the Utility Fund was $14,600. 7. Accounts payable at year-end totaled $3,090. Prepare the adjusting entry related to accounts payable. 8. Materials and supplies used during the year were $8,660.Prepare the adjusting entry related to materials and supplies. 9. Charges to departments during the fiscal year were as follows. Prepare the adjusting entry related to charges to departments. 9. Charges to departments during the fiscal year were as follows. Prepare the adjusting entry related to charges to departments. General Fund Special Revenue Fund $60,300 21,400 10. Unpaid balances at year-end were. Prepare the adjusting entry related to due from other funds. General Fund Special Revenue Fund $ 3,600 1,900 11. The depreciation for the year was $5,800. 12. Revenue and expense accounts for the year were closed. a-3. Prepare a statement of revenues, expenses, and changes in net position for the Information Technology Fund for the current year ended December 31. (Enter your answers in thousands of dollars.) WASHINGTON CITY Information Technology Fund Statement of Revenues, Expenses, and Changes in Fund Net Position For the Year Ended December 31 Billings to Departments Operating Expenses: Total Operating Expenses 0 0 Net Position, January 1 Net Position, December 31 $ 0 b. Prepare a statement of net position for the Information Technology Fund as of December 31. (Enter your answers in thousands of dollars.) WASHINGTON CITY Information Technology Fund Statement of Net Position As of December 31 Assets Current Assets S 0 Total Current Assets Capital Assets 0 Total Capital Assets Total Assets Liabilities 0 Total Current Liabilities 0 Net Position Net Position-Net Investment in Capital Assets Net Position-Unrestricted Total Net Position S c. Prepare a statement of cash flows for the Information Technology Fund for the current year ended December 31. (Negative amounts should be Indicated by a minus sign. Enter your answers in thousands of dollars.) 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: 0 S 0 0 Net Cash Provided by Operations Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents, 01/01 Cash and Cash Equivalents, 12/31 S 0 Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income (Loss) Adjustments: Depreciation Expense Machinery and Equipment 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 S