UNIVERSIDAD INTERAMERICANA DE PUERTO RICO RECINTO DE GUAYAMA Nombre: Profesora: Carmen D. Estrella Fecha: 3460 Problem - Internal Service Fund Journal Entries ACCT Listed below are selected transactions for the Maury County Internal Service Fund. Transactions: 1. Purchased a building on January 2, 20X2, by paying $100,000 down and borrowing $350,000 on a 6%, 10- year mortgage. Assume semi-annual mortgage payments are due each June 30 and December 31, beginning this year. The building will be depreciated over 20 years with no salvage value using the straight- line method. 2. Purchased supplies on account, $58,000. The fund uses the perpetual inventory method when accounting for supplies. 3. Paid employee salaries, $120,000. Accrued salaries at year end were $13,000. Accrued salaries at the beginning of the year were $9,000. 4. Billed General Fund departments S400,000 for services provided to those departments. Billings to the Enterprise Fund totaled $30,000. 90% of these billings were collected by year end. The remaining 10% is not expected to be collected from the other funds until the second quarter of the next fiscal year. 5. The first semi-annual mortgage payment of $23,500 was made. 6. Paid $50,000 on account. 7. Supplies on hand at year end have a cost of $4,000. The beginning of the year inventory was $6,000. 8. The second semi-annual mortgage payment of $23,500 was made. 9. Record depreciation on the building for the year. Requirements: 1. Prepare the journal entries required in the Internal Service Fund. If no entry is required, state "No entry