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

question 53

Essay

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.

---

Definitions:

Emotion-Focused Coping

A stress management strategy where individuals try to reduce the negative emotional responses associated with stress.

Cortisol Levels

A measure of the concentration of cortisol, a hormone released by the adrenal glands in response to stress.

Blood Pressure

The pressure of circulating blood against the walls of blood vessels, crucial for maintaining life.

External Locus of Control

A psychological concept referring to an individual's belief that external forces, beyond their personal control, significantly influence their life events and outcomes.