Lincoln County’s General Fund had two interfund transactions:
1. The General Fund paid $225,000 to the Housing and Urban Development Fund, a special revenue fund that is supported by grants from the federal government on a cost reimbursement basis. The amount is to be repaid to the General Fund as grant proceeds are received from the federal government.

2. The General Fund paid $162,000 to the Tourism Fund, a special revenue fund that is supported by hotel and restaurant taxes. The amount is intended to supplement the taxes raised, and there is no expectation that it will be repaid to the General Fund.

Required:
Prepare the journal entries in the General Fund and affected special revenue funds for the interfund transactions above. Describe the effect of these transactions on the fund balance of the General and special revenue funds.