When Insurance Premiums Went Through the Roof, Shorte City Decided

When insurance premiums went through the roof, Shorte City decided to "self insure." It established an internal service fund (ISF), setting aside resources for potential claims in the new fund. During the year, the following transactions were recorded in the ISF:
-The ISF recognized $1.5 million in claims expense/liabilities in accordance with GASB standards and paid $1.3 million of those claims.
-Based on an actuarial calculation, the ISF billed the other funds of the city for $2.0 million. Of this amount, $1.2 million was billed to the city's general fund and $0.8 million was billed to the city's water and sewer enterprise fund. The actuarial valuation included a reasonable provision for future catastrophe losses of $0.3 million.
REQUIRED:
a) Prepare journal entries to record these transactions in the city's self-insurance ISF.
b) Suppose, instead, that the city reported its self-insurance activities in the general fund. Prepare journal entries to record these transactions in the City's general fund. Assume that any excess was allocated ratably (proportionately) between the general fund and the water and sewer fund.