$5-9$

The manner in which a transfer is accounted for depends on its nature.

Prepare general fund journal entries to record the following cash transfers that a city made from its general fund to other funds. Be sure your entry reflects the nature of the transfer.

$$4,000,000$ to provide start$-$up capital to a newly established internal service fund that will account for the city's data processing activities

$$50,000$ to pay for data processing services provided by the data processing internal service fund

$$38,000$ to reimburse the capital projects fund for equipment rental costs that it incurred on behalf of activities accounted for in the general fund

$$300,000$ to pay the electric utility fund for four months of electric service

$$600,000$ to enable the debt service fund to make timely payments of principal and interest on outstanding general obligation debt