Problem 4 - (Journal entries for an Internal Service Fund) Capital City establishes an Internal Service Fund (ISF) to account for the costs of printing services that it will provide to the various City departments. Make journal entries to record the following transactions in the ISF. a. The General Fund transfers $425,000 to the ISF as a permanent contribution to start the printing activity. The ISF immediately uses $400,000 of the cash to purchase printing equipment. (The printing equipment is estimated to have an average useful life of 8 years.) On various occasions during the year, the ISF buys paper and other supplies in the amount of $90,000 on open account. The supplies are put into inventory. The invoices received in c., above are paid. Employee salaries for the year amounting to $345,000 are paid. Of this amount, however, $20,000 is withheld from the employees for federal income taxes. Taxes withheld from the employees in e., above, are paid to the federal government. The ISF makes a payment of $41,000 to the City's Pension Trust Fund for pensions applicable to the salaries of its personnel. The ISF receives an invoice of $28,000 from the General Fund for occupancy costs, which includes space and utility costs. The ISF sends invoices throughout the year to several City agencies for printing services, as follows: (1) To General Fund departments $575,000 (2) To the Water Enterprise Fund 9,500 The ISF receives payments of $555,000 from General Fund agencies and $9,500 from the Water Enterprise Fund