Washington City created an Information Technology department four years ago to c

Question

Washington City created an Information Technology department four years ago to centralize information technology ( functions for the city. The goal of the department was to reduce costs, avoid duplication of eftorts, and provide up-to- date technology to al of the city's operations. The fund was designed to be seit-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. Debits Credits $14,500 4,250 350 53,600 Cash Due from other Funda 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 $30,100 2,550 2,650 1,200 23,500 12,700 $72,700 $72,700 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 soclal security taxes withheld from that amount totaled $18,725. 2. Office expenses in the amount of $3,700 were paid in cash. 3. Materlals and supplies purchased on account during the year were $8,400. 4. A bill totaling $14,525 was recelved 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. B. Materlals 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 $57,500 20,600 0. Unpaid balances at year-end were: Ceneral Fund Special Revenue Fund 1,800 $3 500 11. The depreclation 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.)

Explanation / Answer

Cash Received from customer = Beginning Due from customer + Billing to department - Ending Due from customer

Cash Received from customer = 4250 + 78100 - 5300

Cash Received from customer = 77050

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