Develop a journal entries to record the following transactions of an Internal Service Fund:

1. Paid salaries of $10,000. Additional salaries accrued but not paid totaled $300.
2. Purchased equipment costing $50,000 by issuing a 3-year, 10%, $45,000 note and making a down payment of $5,000.
3. Billed users for services, $100,000; $90,000 was collected during the year; $10,000 is expected to be collected during the second quarter of the next fiscal year.
4. Incurred a probable loss from claims and judgments of $25,000. Nothing is expected to be paid for at least two years, however.
5. Ordered supplies with an estimated cost of $80,000.
6. Received half of the supplies at an actual cost of $41,000. A voucher was prepared and paid.
7. Supplies that cost $25,000 were used.
8. Depreciation for the year was $16,000 on equipment and $25,000 on buildings.
9. The first interest payment on the $45,000 note (item 2) is not due until the end of the first quarter of the next fiscal year. Prepare any required adjusting entry.
10. Sold equipment with an original cost of $28,000 for $10,000. Accumulated depreciation on the equipment was $21,000 at the date of the sale.