Following is information summarizing the transactions of the Art League for the year ended June 3 0
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Following is information summarizing the transactions of the Art League for the year ended June
for educational workshops, $; and sales of members' art, $ ?of which ?percent represents commissions earned by the Art League.
use
The Art League receives free rent from the city at an estimated value of $ ?a year.
Expenses, $
Depreciation on equipment in the amount of $ ?was recorded.
Proceeds of art sales, net of commissions charged by the Art League, totaled $ ?This amount was paid to member artists during the year.
All nominal accounts were closed at yearend.
Transcribed Image Text:
The Art League is a not-for-profit organization dedicated to promoting the arts within the community. There are two programs conducted by the Art League: (1) exhibition and sales of members' art (referred to as Exhibition) and (2) Community Art Education. Activities of the Art League are conducted by a part-time administrator, a part-time secretary-bookkeeper, and several part-time volunteers. The volunteers greet visitors, monitor the security of the exhibit hall, and handle the sales of art to the public. Art on exhibit is considered the property of the member artists, not the Art League. The post-closing trial balance for the Art League as of June 30, 2022, is shown here. Cash Short-term Investments Grants Receivable Prepaid Expense ART LEAGUE Post-closing Trial Balance June 30, 2022 Equipment Allowance for Depreciation-Equipment Allowance Long-Term Investments-With Donor Restrictions Accounts Payable and Accrued Expenses Net Assets Without Donor Restrictions Net Assets With Donor Restrictions-Programs Net Assets With Donor Restrictions-Permanent Endowment Totals Debits $ 2,770 12,811 5,300 1,165 9,695 5,837 $37,578 Credits $ 2,496 2,719 9,081 17,445 5,837 $37,578 Following is information summarizing the transactions of the Art League for the year ended June 30, 2023. 1. During the year, cash was received from the following sources: grants that had been reported as a receivable on June 30, 2022, $5,300; annual contributions without donor restrictions from fund drives and other unrestricted gifts, $21,141; membership dues, $16,635; tuition and fees for educational workshops, $7,044; and sales of members' art, $12,080, of which 20 percent represents commissions earned by the Art League. 2. Interest earnings were as follows: interest on investments without donor restrictions totaled $693; interest on investments restricted for programs totaled $932; interest on investments in the permanent endowment totaled $351 (these investment earnings are restricted for program use). this year. 3. A grant receivable of $5,160 was recorded at year-end on a grant to complete and deliver a survey of art programs conducted in the county (the grant was determined to be an exchange transaction). The $5,160 the Art League invoiced related to work dor 4. The Art League receives free rent from the city at an estimated value of $18,700 a year. 5. Expenses incurred during the year were as follows: salaries and fringe benefits, $47,600; utilities, $3,150; printing and postage, $1,380; and miscellaneous, $710. As of year-end, the balances of the following accounts were Prepaid Expenses, $910, and Accounts Payable and Accrued Expenses, $2,851. ring the 6. During the year, $3,250 of short-term investments were sold, with the proceeds used to purchase two computers and a printer at a cost of $2,905. The resources used were restricted for the purchase of equipment. In accordance with the terms of the Art League endowment, income earned by the endowment was used to provide free art instruction for children with disabilities at a cost of $895. This amount was allocated to community art education. 8. Depreciation on equipment in the amount of $1,712 was recorded. 9. Expenses for the year were allocated 30 percent to Exhibition Program, 30 percent to Community Art Education, 25 percent to Management and General Expenses, and 15 percent to Fund-Raising. 10. Proceeds of art sales, net of commissions charged by the Art League, totaled $9,664. This amount was paid to member artists during the year. 11. All nominal accounts were closed at year-end. The Art League is a not-for-profit organization dedicated to promoting the arts within the community. There are two programs conducted by the Art League: (1) exhibition and sales of members' art (referred to as Exhibition) and (2) Community Art Education. Activities of the Art League are conducted by a part-time administrator, a part-time secretary-bookkeeper, and several part-time volunteers. The volunteers greet visitors, monitor the security of the exhibit hall, and handle the sales of art to the public. Art on exhibit is considered the property of the member artists, not the Art League. The post-closing trial balance for the Art League as of June 30, 2022, is shown here. Cash Short-term Investments Grants Receivable Prepaid Expense ART LEAGUE Post-closing Trial Balance June 30, 2022 Equipment Allowance for Depreciation-Equipment Allowance Long-Term Investments-With Donor Restrictions Accounts Payable and Accrued Expenses Net Assets Without Donor Restrictions Net Assets With Donor Restrictions-Programs Net Assets With Donor Restrictions-Permanent Endowment Totals Debits $ 2,770 12,811 5,300 1,165 9,695 5,837 $37,578 Credits $ 2,496 2,719 9,081 17,445 5,837 $37,578 Following is information summarizing the transactions of the Art League for the year ended June 30, 2023. 1. During the year, cash was received from the following sources: grants that had been reported as a receivable on June 30, 2022, $5,300; annual contributions without donor restrictions from fund drives and other unrestricted gifts, $21,141; membership dues, $16,635; tuition and fees for educational workshops, $7,044; and sales of members' art, $12,080, of which 20 percent represents commissions earned by the Art League. 2. Interest earnings were as follows: interest on investments without donor restrictions totaled $693; interest on investments restricted for programs totaled $932; interest on investments in the permanent endowment totaled $351 (these investment earnings are restricted for program use). this year. 3. A grant receivable of $5,160 was recorded at year-end on a grant to complete and deliver a survey of art programs conducted in the county (the grant was determined to be an exchange transaction). The $5,160 the Art League invoiced related to work dor 4. The Art League receives free rent from the city at an estimated value of $18,700 a year. 5. Expenses incurred during the year were as follows: salaries and fringe benefits, $47,600; utilities, $3,150; printing and postage, $1,380; and miscellaneous, $710. As of year-end, the balances of the following accounts were Prepaid Expenses, $910, and Accounts Payable and Accrued Expenses, $2,851. ring the 6. During the year, $3,250 of short-term investments were sold, with the proceeds used to purchase two computers and a printer at a cost of $2,905. The resources used were restricted for the purchase of equipment. In accordance with the terms of the Art League endowment, income earned by the endowment was used to provide free art instruction for children with disabilities at a cost of $895. This amount was allocated to community art education. 8. Depreciation on equipment in the amount of $1,712 was recorded. 9. Expenses for the year were allocated 30 percent to Exhibition Program, 30 percent to Community Art Education, 25 percent to Management and General Expenses, and 15 percent to Fund-Raising. 10. Proceeds of art sales, net of commissions charged by the Art League, totaled $9,664. This amount was paid to member artists during the year. 11. All nominal accounts were closed at year-end.
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Based on the provided summary and postclosing trial balance for the Art League for the year ended June 30 2023 lets assess and organize the financial information presented 1 Cash Received Grants previ... View the full answer
Related Book For
Accounting for Governmental and Nonprofit Entities
ISBN: 978-1259917059
18th edition
Authors: Jacqueline L. Reck, James E. Rooks, Suzanne Lowensohn, Daniel Neely
Posted Date:
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