Measurement focus is closely tied to basis of accounting. 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 9o-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 (i.e., cash plus short-term receivables less short-term payables) - All economic resources A special district's balance sheet may not capture its economic resources and obligations. A special district accounts for its general fund (its only fund) on a modified accrual basis. In a particular period, it engaged in the following transactions: - It issued $20 million in long-term bonds. - It acquired several tracts of land at a total cost of $4 million, paying the entire amount in cash. - It sold a portion of the land for $1 million, receiving cash for the entire amount. The tract sold had cost $0.8 million. - It repaid $2 million of the bonds. - It lost a lawsuit and was ordered to pay $9 million over three years. It made its first cash payment of \$3 million. 1. Prepare journal entries to record the transactions in the general fund. Funds are separate fiscal and accounting entities, each with its own self-balancing set of accounts. The newly established Society for Ethical Teachings, a not-for-profit organization, maintains two funds-a general fund for operations and a building fund to accumulate resources for a new building. In its first year, it engaged in the following transactions: 1. It received cash contributions of $200,000, of which $40,000 were restricted to the acquisition of the new building. 2. It incurred operating costs of $130,000, of which it paid $120,000 in cash. 3. It earned $3,000 of interest (the entire amount received in cash) on resources restricted to the acquisition of the new building. 4. It transferred $17,000 from the operating fund to the new building fund. 5. It paid $12,000 in fees (accounted for as expenses) to an architect to draw up plans for the new building. a. Prepare journal entries to record the transactions. Be certain to indicate the fund in which these entries would be made