A Motor Pool Internal Service Fund purchased ten new vehicles for their fleet inventory. The fund entered into a capital lease. The capitalizable cost totaled $300,000 and there was a $50,000 down payment

The entry to record the transaction in the Internal Service Fund would be

dr cr

a. Vehicles $300,000 Expenditures 50,000 Other Financing Source – Capital Lease $300,000 Cash 50,000
b. Expenditures $300,000 Other Financing Source – Capital Lease $250,000 Cash 50,000
c. Vehicles $300,000 Other Financing Sources – Capital Lease $250,000 Cash 50,000
d. Vehicles $300,000
Capital Lease Payable $250,000
Cash 50,000
e. Vehicles $250,000
Expenditures 50,000
Capital Lease Payable $250,000
Cash 50,000

C