P. 5-9 Not all interfund activities are classified as "transfers. cial statements of Independence, Missouri. Interfund Charges for Support Services Interfund charges for support services (which would otherwise be acquired from outsiders) and rent paid to The following information was abstracted from a note, headed "Interfund Transactions." to the finan- the General Fund during the fiscal year were as follows: Interfund Charges Rent Tourism fund S 4.372 230,933 36,883 34,243 Power and light fund Water fund Sanitary sewer fund Central garage fund $1,285,011 522,244 629,442 2.589,027 0984 Rent charges, which consist of leased office space and computer charges, are included in other revenue of the general fund. Payments in Lieu of Taxes The payments of $5,161,609, S628,371, and $880,637 in the fiscal year by the power and light, sanitary sewer, and water (enterprise) funds, respectively, to the general fund in lieu of taxes represent franchise taxes and real estate taxes on plants in service. The franchise tax rate, established by city ordinance at 9.08 percent for the year, is applied to gross billed operating revenues less amounts written off to arrive at the franchise tax due the general fund. Real estate taxes are charged at a set amount Interfund Operating Transfers Interfund operating transfers for the fiscal year were as follows: Transfer from Transfer to 173,617 930,000 $ 944,327 307.772 General Special revenue Debt service Capital projects Enterprise Internal service 440,551 157,918 3,000 140,604 9,453 1.553,621 Total operating transfers 1. Based on the information provided, prepare four joumal entries (for support services, rent, payments in lieu of taxes, and interfund operating transfers) to record the transfers into the general fund. Be sure the account titles you use make clear the nature of the transaction (e.g., revenue, reciprocal transfer nonreciprocal transfer). 2. Justify any differences in how you classified the interfund transactions