Prepare the journal entries required in an Internal Service Fund to record the following transactions.

1.Purchased a building on July 1 by paying $150,000 down and borrowing $250,000 on a 6%, 10-year mortgage.Assume annual mortgage payments are due each July 1, beginning next year.

2.Purchased materials and supplies on account, $ 75,000.

3.Paid employee salaries, $160,000.Accrued salaries at year end were $23,000.Accrued salaries at the beginning of the year were $ 39,000.

4.Billed General Fund departments $ 500,000 for services provided to those departments.Billings to the Enterprise Fund totaled $ 60,000.All but 20% of these billings were collected by year end.The remaining 20% is not expected to be collected from the other funds until the second quarter of the next fiscal year.

5.Materials on hand at year end have a cost of $ 4,000.The beginning of the year inventory was$16,000.