The City of Southern Pines maintains its books so as to prepare fund accounting statements and records worksheet adjustments in order to prepare government wide statements. As such, the City's internal service fund, a motor pool fund, is included in the proprietary funds statements. Prepare necessary adjustments in order to incorporate the internal service fund in the government- wide statements as a part of governmental activities.

1. Balance sheet asset accounts include: Cash, $85,000; Investments, $125,000; Due from the General Fund, $15,000; Inventories, $325,000; and Capital Assets (net), $960,000. Liability accounts include: Accounts Payable, $50,000; Long-Term Advance from Enterprise Fund, $600,000.

2. The only transaction in the internal service fund that is external to the government is interest revenue in the amount of $2,800.

3. Exclusive of the interest revenue, the internal service fund reported net income in the amount of $36,000. An examination of the records indicates that services were provided as follows: one-third to general government, one-third to public safety, and one-third to public works?