Prepare journal entries to record the following transactions

of an
Prepare journal entries to record the following transactions of an Internal Service Fund:1. Paid
salaries of $10,000. Additional salaries accrued but not paid totaled $300.2. Purchased
equipment costing $50,000 by issuing a three-year, 10%, $45,000 note and making a down
payment of $5,000.3. Billed users for services, $100,000; $90,000 was collected during the
year; $10,000 is expected to be collected during the second quarter of the next fiscal year.4.
Incurred a probable loss from claims and judgments of $25,000. Nothing is expected to be paid
for at least two years, however.5. Ordered supplies with an estimated cost of $80,000.6.
Received half of the supplies at an actual cost of $41,000. A voucher was prepared and paid.7.
Supplies that cost $25,000 were used.8. Depreciation for the year was $16,000 on equipment
and $25,000 on buildings.9. The first interest payment on the $45,000 note (item 2) is not due
until the end of the first quarter of the next fiscal year. Prepare any required adjusting entry.10.
Sold equipment with an original cost of $28,000 for $10,000. Accumulated depreciation on the
equipment was $21,000 at the date of the sale.View Solution: Prepare journal entries to record
the following transactions of an
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