P 21-1 Internal service fund journal entries The City of Thomasville established an internal service fund to provide printing services to all city offices and departments. The following transactions related to the fund took place in 2016:

1. On January 15, the general fund transferred equipment with a book value of $550,000 and provided a $500,000 loan to the internal service fund.

2. On February 1, the internal service fund acquired $200,000 worth of printing equipment and computers.

The assets have a five-year life with no salvage, and the city uses straight-line depreciation.

Assume half-year depreciation in the year of acquisition. They paid cash.

3. Throughout the year, the internal service fund billed various departments $345,000 for service rendered and collected $300,000 of the amount billed.

4. Various expenses for the year were as follows: wages and salaries, $180,000; payroll taxes, $37,800;

repayment to the general fund, $50,000; and other operating expenses, $120,000. They paid cash.

REQuIRED: Prepare all necessary journal entries for the printing services internal service fund for the year ended December 31, 2016.