The City of Thomasville established an internal service fund to provide printing services to all city offices and departments. The following transactions related to the fund took place in 2016:
1. On January 15, the general fund transferred equipment with a book value of $550,000 and provided a $500,000 loan to the internal service fund.
2. On February 1, the internal service fund acquired $200,000 worth of printing equipment and computers. The assets have a five-year life with no salvage, and the city uses straight-line depreciation. Assume half-year depreciation in the year of acquisition. They paid cash.
3. Throughout the year, the internal service fund billed various departments $345,000 for service rendered and collected $300,000 of the amount billed.
4. Various expenses for the year were as follows: wages and salaries, $180,000; payroll taxes, $37,800; repayment to the general fund, $50,000; and other operating expenses, $120,000. They paid cash.
REQUIRED:
Prepare all necessary journal entries for the printing services internal service fund for the year ended December 31, 2016.