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E 2-3a. a newly established not-for-profit organization engaged in

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E 2-3a. 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 amount2.      The donor paid $300,000 of the amount pledged3.      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 acquisition4.      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 funda. Prepare journal entries to record the transactions, making the following alternative assumptions as to the organizations measurement focus: cash only, cash plus other current financial resources, all economic resources  E 2-6. For each of the following transactions, indicate the fund in which each transaction would most likely be recorded:a. The city collects $3 million of taxes on behalf of the county in which it is located.  b. It spends $4 million to pave city streets, using the proceeds of a city gasoline tax dedicated for road and highway improvements.  c. It receives a contribution of $5 million.  Per the stipulation of the donor, the money is to be invested in marketable securities and the interest from the securities is to be used to maintain a city park.  d. It collects $800,000 in landing fees at the city-owned airport.  e. It earns $200,000 on investments set aside to make principal payments to the city’s outstanding bonds.  The bonds were issued to finance improvements to the city’s tunnels and bridges.f. It pays $4 million to a contractor for work on one of these bridges.g. It pays $80,000 in wages and salaries to police officers.  h. It purchases from an outside supplier $40,000 of stationery that it will “sell” to its various operating departments.  

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