A Motor Pool Internal Service Fund Purchased Ten New Vehicles

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