The Chessie Foundation, a Newly Established Governmental Entity, Engaged in the Following

The Chessie Foundation, a newly established governmental entity, engaged in the following transactions:
-A donor made a $1,000,000 pledge, giving the foundation a legally enforceable 90-day note for the full amount.
-The same donor paid $500,000 of the amount pledged.
-The foundation purchased a building for $900,000, paying $90,000 in cash and giving a ten-year mortgage for the balance. The building has a 25-year useful life. The foundation charges a half-year's depreciation for all assets in the year they are acquired.
-The foundation hired five employees. By year-end, these employees have earned $10,000 in salaries and wages for which they have not been paid.
The foundation accounts for its activities in a single fund.
a. Prepare journal entries to record the transactions, making the following alternative assumptions as to the fund's measurement focus:
-Cash only
-Cash plus other current financial resources (cash plus short-term receivables less short-term payables)
-All economic resources
b. Based on your entries, prepare appropriate operating statements and balance sheets for the organization.

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To record the cash paid to ac...

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