On July 1, the board of education of the Kimberly Hills School District created an internal service fund to provide pupil transportation services. To establish this fund, the following were transferred to the school district’s Pupil Transportation Service Department:

Instructions:

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Cash Transportation vehicles Maintenance equipment $200,000 240,000 60,000 Maintenance and operating supplies 50,000 Prepaid rent, garage (July 1-Dec. 31) 3,000 During the month of July, the following transactions occurred: July 2-Purchased repair parts on account, $10,000. July 4-Maintenance and operating supplies requisitioned by mechanics, $1,000. July 5-Repair parts requisitioned by mechanics, $8,000. July 10-Purchased additional repair parts on account, $25,000. July 12-Payment of transportation insurance premium for year beginning July 1, $6,000. July 12-Payment on account for repair parts purchased. July 15-Purchased maintenance and operating supplies on account, $10,000. July 20-Payment on account for repair parts purchased. July 30-Paid drivers salaries, $5,000. Paid maintenance salaries, $2,000. Paid heat, light and power bills, $1,500.