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.

ART LEAGUE

Post$-$closing Trial Balance

June $30,2022$

Debits Credits

Cash $ $2,980$

Short$-$term Investments $12,311$

Grants Receivable $4,700$

Prepaid Expense $1,075$

Equipment $9,395$

Allowance for Depreciation$$Equipment $ $2,436$

Long$-$Term Investments$$With Donor Restrictions $5,777$

Accounts Payable and Accrued Expenses $2,659$

Net Assets Without Donor Restrictions $9,021$

Net Assets With Donor Restrictions$$Programs $16,345$

Net Assets With Donor Restrictions$$Permanent Endowment $5,777$

Totals $ $36,238$ $ $36,238$

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 $30,2022,$ $$4,700$; annual contributions without donor restrictions from fund drives and other unrestricted gifts, $$20,901$; membership dues, $$16,335$; tuition and fees for educational workshops, $$6,984$; and sales of members$$ art, $$12,020,$ of which $20$ percent represents commissions earned by the Art League.

$2$ Interest earnings were as follows: interest on investments without donor restrictions totaled $$687$; interest on investments restricted for programs totaled $$926$; interest on investments in the permanent endowment totaled $$345($these investment earnings are restricted for program use$).$ Record the interest on investment income received during the year.

$3$ A grant receivable of $$5,040$ was recorded at year$-$end on a grant to complete and deliver a survey of art programs conducted in the county $($the grant was determined to be an exchange transaction$).$ The $$5,040$ the Art League invoiced related to work done this year.

$4$ The Art League receives free rent from the city at an estimated value of $$18,100$ a year. The Art League receives free rent from the city at an estimated value of a year.

$5$ Expenses incurred during the year were as follows: salaries and fringe benefits, $$47,000$; utilities, $$3,090$; printing and postage, $$1,320$; and miscellaneous, $$650.$ As of year$-$end, the balances of the following accounts were Prepaid Expenses, $$850,$ and Accounts Payable and Accrued Expenses, $$2,761.$

$6$ During the year, $$2,950$ of short$-$term investments were sold, with the proceeds used to purchase two computers and a printer at a cost of $$2,845.$ The resources used were restricted for the purchase of equipment.

$7$ 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 $$835.$ This amount was allocated to community art education.

$8$ Depreciation on equipment in the amount of $$1,652$ 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 $$9,616.$ This amount was paid to member artists during the year.

$11$ All nominal accounts were closed at year$-$end.

Prepare the following journal entries to record these transactions using only accounts included in the chart of accounts below. Expense transactions should be initially recorded by object classification unless otherwise instructed; in entry $9,$ expenses will be allocated to functions.

E Expenses incurred during the year were as follows: salaries and fringe benefits, $$47,000$; utilities, $$3,090$; printing and postage, $$1,320$; and miscellaneous, $$650.$ As of year$-$end, the balances of the following accounts were Prepaid Expenses, $$850,$ and Accounts Payable and Accrued Expenses, $$2,761.$

L Record the expenses for the year of which $30$ percent allocated to Exhibition Program; $30$ percent to Community Art Education; $25$ percent to Management and General Expenses; and $15$ percent to Fund$-$Raising.

M Record the $$9,616$ proceeds of art sales, net of commissions charged by the Art League. This amount was paid to member artists during the year.

N Record the closure of all nominal accounts without donor restrictions at year$-$end.

O Record the closure of investment income at the year$-$end.