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. 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) $ 13,800 3,990 340 52,500 $ 29,600 1,640 2,620 1,170 22,900 12,700 $ 70,630 $ 70,630 During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred: 1. Gross employee wages were $56,100, including the employer's share of social security taxes amounting to $4,000. Federal income and social security taxes withheld from that amount totaled $18,280. 2. Office expenses in the amount of $3,630 were paid in cash. 3. Materials and supplies purchased on account during the year were $8,230. 4. A bill totaling $14,230 was received for utilities provided by Washington City's utility fund. 5. Cash paid to the federal government for payroll taxes was $22,600. 6. Cash paid to the Utility Fund was $13,800. 7. Accounts payable at year-end totaled $2,890. 8. Materials and supplies used during the year were $8,090. 9. Charges to departments during the fiscal year were as follows: General Fund Special Revenue Fund $56,400 20, 200 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.) 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 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 Net Position, January 1 Net Position, December 31 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: Total Current Assets Capital Assets: Total Capital Assets Total Assets Liabilities Total Current Liabilities Net Position Net Position-Net Investment in Capital Assets Net PositionUnrestricted Total Net Position 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: Net Cash Provided by Operations Net Decrease in Cash and Cash Equivalents Cash and Cash Equivalents, 01/01 Cash and Cash Equivalents, 12/31 Reconciliation of Operating Income to Net Cash Provided by Operations Operating Income/(Loss) Adjustments: Depreciation ExpenseMachinery 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 d. Has the manager of the IT department been able to achieve the goal of recovering costs through user fees? Yes