During 2021, the general fund of the City of Merryville had the following interfund transactions:

1. $500,000 to the municipal transit system for the acquisition of railcars and buses; the amount transferred will not be repaid to the general fund;
2. $2,000 to the water utility for water used by the police and fire departments;
3. $51,000 (including interest) from the motor vehicle maintenance internal service fund to pay the last of 5 equal annual installments from a $250,000 advance made 5 years ago; and
4. $1,500 from a special revenue fund for expenditures charged to the mayors office for supplies that will be used by the special revenue fund.

Required:

1. State the type of interfund transaction for each transaction.
2. Make the journal entry in Merryvilles general fund to record each of the four interfund transactions. Assume cash was transferred when making your entries (i.e. skip recording due from other funds and due to other funds.

1. Type of interfund transaction:

Accounts Debits Credits

2. Type of interfund transaction:

Accounts Debits Credits

3. Type of interfund transaction:

Accounts Debits Credits

4. Type of interfund transaction:

Accounts Debits Credits