A Motor Pool Internal Service Fund Purchased Ten New Vehicles

question 29

Short Answer

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 $\begin{array}{llr}&&\text { Debit }&\text {Credit }\\ \text { A.} & \text {Vehicles. } &\$300,000\\& \text { Expenditures. } &50,000\\& \text { Other Financing Source - Capital Lease } &&\$300,000\\& \text { Cash } &&50,000\\\\ \text { B. } & \text { Vehicles. } &\$300,000\\& \text { Other Financing Source - Capital Lease } &&\$250,000\\& \text { Cash} &&50,000\\\\ \text { C. } & \text { Vehicles. } &\$300,000\\& \text { Capital Lease Payable } &&\$250,000\\& \text { Cash} &&50,000\\ \\ \text { D. } & \text {Vehicles. } &\$250,000\\& \text { Expenditures. } &50,000\\& \text {Capital Lease Payable } &&\$250,000\\& \text { Cash } &&50,000\\\end{array}$

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Definitions:

Estrogen

A group of hormones responsible for the development and regulation of the female reproductive system and secondary sex characteristics.

Estr/o

Prefix in medical terminology indicating estrogen or estrus.

Thyroid Gland

An endocrine gland in the neck that produces hormones regulating metabolism, energy generation, and growth.

Catecholamines

Hormones made by the adrenal glands, such as adrenaline and noradrenaline, which are involved in the body's stress response.