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 4 percent. The preclosing trial balance for the IT department as of last year, is shown below. Debits Credits (in thousands) Cash $ 14,600 Due from Other Funds 4,730 Materials and Supplies Inventory 410 Machinery and Equipment 54,700 Accumulated Depreciation $ 31,000 Accounts Payable 2,690 Due to Federal Government 2,740 Due to Other Funds 1,210 Net Position—Net Investment in Capital Assets 23,700 Net Position—Unrestricted 13,100 $ 74,440 $ 74,440 During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred: 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. Office expenses in the amount of $3,910 were paid in cash. Materials and supplies purchased on account during the year were $8,880. A bill totaling $15,350 was received for utilities provided by Washington City’s utility fund. Cash paid to the federal government for payroll taxes was $24,200. Cash paid to the Utility Fund was $14,600. Accounts payable at year-end totaled $3,090. Materials and supplies used during the year were $8,660. Charges to departments during the fiscal year were as follows: General Fund $ 60,300 Special Revenue Fund 21,400 10. Unpaid balances at year-end were: General Fund $ 3,600 Special Revenue Fund 1,900 11. The depreciation for the year was $5,800. 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.)

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 4 percent. The preclosing trial balance for the IT department as of last year, is shown below. Debits Credits (in thousands) Cash $ 14,600 Due from Other Funds 4,730 Materials and Supplies Inventory 410 Machinery and Equipment 54,700 Accumulated Depreciation $ 31,000 Accounts Payable 2,690 Due to Federal Government 2,740 Due to Other Funds 1,210 Net Position—Net Investment in Capital Assets 23,700 Net Position—Unrestricted 13,100 $ 74,440 $ 74,440 During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred: 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. Office expenses in the amount of $3,910 were paid in cash. Materials and supplies purchased on account during the year were $8,880. A bill totaling $15,350 was received for utilities provided by Washington City’s utility fund. Cash paid to the federal government for payroll taxes was $24,200. Cash paid to the Utility Fund was $14,600. Accounts payable at year-end totaled $3,090. Materials and supplies used during the year were $8,660. Charges to departments during the fiscal year were as follows: General Fund $ 60,300 Special Revenue Fund 21,400 10. Unpaid balances at year-end were: General Fund $ 3,600 Special Revenue Fund 1,900 11. The depreciation for the year was $5,800. 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.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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	Debits		Credits
	(in thousands)
Cash	$	14,600
Due from Other Funds		4,730
Materials and Supplies Inventory		410
Machinery and Equipment		54,700
Accumulated Depreciation				$	31,000
Accounts Payable					2,690
Due to Federal Government					2,740
Due to Other Funds					1,210
Net Position—Net Investment in Capital Assets					23,700
Net Position—Unrestricted					13,100
	$	74,440		$	74,440

During the current fiscal year ended December 31, the following transactions (summarized in thousands of dollars) occurred:

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.
Office expenses in the amount of $3,910 were paid in cash.
Materials and supplies purchased on account during the year were $8,880.
A bill totaling $15,350 was received for utilities provided by Washington City’s utility fund.
Cash paid to the federal government for payroll taxes was $24,200.
Cash paid to the Utility Fund was $14,600.
Accounts payable at year-end totaled $3,090.
Materials and supplies used during the year were $8,660.
Charges to departments during the fiscal year were as follows:


General Fund	$	60,300
Special Revenue Fund		21,400

10. Unpaid balances at year-end were:


General Fund	$	3,600
Special Revenue Fund		1,900

11. The depreciation for the year was $5,800.
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.)

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