A newly established not-for-profit organization engaged in the following transactions:

1. A donor pledged $1,000,000, giving the organization a legally enforceable 90-day note for the full amount.

2. The donor paid 300,000 of the amount pledged.

3. The organization purchased a building for $600,000, paying $120,000 and giving a 30-year mortgage note for the balance. The building has a 30-year useful life. When appropriate, the organization charges a full year's depreciation in the period of acquisition.

4. It hired employees. By the end of the period, they had earned $4,000 in wages but had not yet been paid. The organization accounts for its activities in a single fund

A. Prepare journal entries to record the transactions, making the following alternative assumptions as to the organization's measurement focus: *Cash Only *Cash plus other current financial resources (ie. cash plus short-term receivables less short-term payables) *All economic resources

B. Based on your entries, prepare appropriate statements of revenues and expenses and balance sheets.