why is it important to distinguish residual equity transfers from operating transfer 615864

Identify the Interfund Activity

The following events take place:

1. The Special Revenue Fund transfers $8,000 to the Internal Service Fund as a temporary loan.
2. The Internal Service Fund bills the Special Revenue Fund $20,000 for services performed.
3. Interest payments in the amount of $14,000 that are the responsibility of the Debt Service Fund are paid by the General Fund.
4. The unexpended balance of the Capital Projects Fund, which is $65,000, is transferred to the General Fund.
5. Current expendable revenues of the Trust Fund in the amount of $35,000 are transferred to the Special Revenue Fund.
6. The General Fund transfers $100,000 to start an Internal Service Fund.

Required:

1. Identify the interfund activity as a loan, services provided and used, interfund transfer, or interfund reimbursement and prepare entries in general journal form to record the transactions on the records of the funds involved.
2. Why is it important to distinguish residual equity transfers from operating transfers?