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, 2019, is shown here ART LEAGUE Post closing Trial Balance June 30, 2019 Debits Credits Cash $ 2,455 Short term Investments 13,711 Grants Receivable 6,200 Prepaid Expense 1,300 Equipment 10,145 Allowance for DepreciationEquipment $ 2,586 Long Term InvestmentsWith Donor Restrictions 5,927 Accounts Payable and Accrued Expenses 2,809 Deferred Revenue 4,400 Net Assets Without Donor Restrictions 9,171 Net Assets With Donor RestrictionsPrograms 14,845 Net Assets With Donor RestrictionsPermanent Endowment 5,927 Totals $ 39,738 $ 39,738 Following is information summarizing the transactions of the Art League for the year ended June 30, 2020 During the year, unrestricted cash was received from the following sources grantsdetermined to be non exchange transactions, $13,200, of which $5,400 had been reported as receivable on June 30, 2019 annual contributions from fund drives and other unrestricted gifts, $14,021 membership dues, $17,085 tuition and fees for educational workshops, $7,134 and sales of members' art, $12,170, of which 20 percent represents commissions earned by the Art League Interest earnings were as follows interest on investments without donor restrictions totaled $702 interest on investments restricted for programs totaled $941 interest on investments in the permanent endowment totaled $360 (these investment earnings are restricted for program use) Grants receivable of $5,340 were recorded at year end on a grant to complete and deliver a survey of art programs conducted in its county (the grant was determined to be an exchange transaction) Of the $5,340 the Art League had invoiced, $3,280 related to work done this year with the remaining $2,060 to be completed the first part of the new year and thus was reported as deferred revenue at year end The Art League receives free rent from the city at an estimated value of $19,600 a year Expenses incurred during the year were as follows salaries and fringe benefits, $48,500 utilities $3,240 printing and postage, $1,470 and miscellaneous, $800 As of year end, the balances of the following accounts were Prepaid Expenses, $1,000, and Accounts Payable and Accrued Expenses, $2,986 During the year, $3,700 of short term investments were sold, with the proceeds used to purchase two computers and a printer at a cost of $2,995 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 for the provision of free art instruction for children with disabilities was provided at a cost of $985 This amount was allocated to community art education Depreciation on equipment in the amount of $1,802 was recorded 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 Proceeds of art sales, net of commissions charged by the Art League, totaled $9,736 This amount was paid to member artists during the year All nominal accounts were closed at year end rev 11 27 2019 QC CS 191779 Required Prepare journal entries to record these transactions Expense transactions should be initially recorded by object classification, unless otherwise instructed in entry 9, expenses will be allocated to functions (If no entry is required for a transaction event, select No Journal Entry Required in the first account field Do not round intermediate calculations Round your answers to the nearest whole dollar amount ) No Transaction General Journal Debit Credit A 01 Cashselected answer correct not attempted 42,589selected answer incorrect Grants Receivableselected answer correct not attempted 11,540selected answer incorrect Membership Duesselected answer correct not attempted 17,085selected answer correct Tuition and Feesselected answer correct not attempted 7,134selected answer correct Commission Revenueselected answer correct not attempted 2,434selected answer correct Payable to Artistsselected answer correct not attempted 9,736selected answer correct B 02 Cashselected answer correct 2,003selected answer correct not attempted Investment IncomeWithout Donor Restrictionsselected answer correct not attempted 702selected answer correct Investment IncomeWith Donor Restrictionsselected answer correct not attempted 1,301selected answer correct C 03 Grants Receivableselected answer correct 5,340selected answer correct not attempted ContributionsWithout Donor Restrictionsselected answer incorrect not attempted 3,280selected answer correct Deferred Revenueselected answer correct not attempted 2,060selected answer correct D 04 Rent Expenseselected answer correct 19,600selected answer correct not attempted ContributionsWithout Donor Restrictionsselected answer correct not attempted 19,600selected answer correct E 05 Salaries and Benefits Expenseselected answer correct 48,500selected answer correct not attempted Utilities Expenseselected answer correct 3,240selected answer correct not attempted Printing and Posting Expenseselected answer correct 1,470selected answer correct not attempted Miscellaneous Expenseselected answer correct 800selected answer correct not attempted Cashselected answer correct not attempted 50,042selected answer incorrect Prepaid Expensesselected answer correct not attempted 1,000selected answer incorrect Accounts Payable and Accrued Expensesselected answer correct not attempted 2,986selected answer incorrect F 6(a) Cashselected answer correct 3,700selected answer correct not attempted Short Term Investmentsselected answer correct not attempted 3,700selected answer correct G 6(b) Equipmentselected answer correct 2,995selected answer correct not attempted Cashselected answer correct not attempted 2,995selected answer correct H 6(c) No Transaction Recorded I 7(a) Community Art Educationselected answer correct 985selected answer correct not attempted Cashselected answer correct not attempted 985selected answer correct J 7(b) Net Assets ReleasedSatisfaction of Purpose RestrictionWith Donor Restrictionsselected answer correct 985selected answer correct not attempted Net Assets ReleasedSatisfaction of Purpose RestrictionWithout Donor Restrictionsselected answer correct not attempted 985selected answer correct K 08 Depreciation Expenseselected answer correct 1,802selected answer correct not attempted Allowance for DepreciationEquipmentselected answer correct not attempted 1,802selected answer correct L 09 Exhibition Programselected answer correct not attempted not attempted Community Art Educationselected answer correct not attempted not attempted Management and Generalselected answer correct not attempted not attempted Fund Raisingselected answer correct not attempted not attempted Rent Expenseselected answer correct not attempted 19,600selected answer correct Salaries and Benefits Expenseselected answer correct not attempted 48,500selected answer correct Utilities Expenseselected answer correct not attempted 3,240selected answer correct Printing and Posting Expenseselected answer correct not attempted 1,470selected answer correct Miscellaneous Expenseselected answer correct not attempted 800selected answer correct Depreciation Expenseselected answer correct not attempted 1,802selected answer correct M 10 Payable to Artistsselected answer correct 9,736selected answer correct not attempted Cashselected answer correct not attempted 9,736selected answer correct N 11(a) ContributionsWithout Donor Restrictionsselected answer correct 19,600selected answer incorrect not attempted Membership Duesselected answer correct 17,085selected answer correct not attempted Tuition and Feesselected answer correct 7,134selected answer correct not attempted Commission Revenueselected answer correct 2,434selected answer correct not attempted Investment IncomeWithout Donor Restrictionsselected answer correct 702selected answer correct not attempted Net Assets Without Donor Restrictionsselected answer correct 9,171selected answer incorrect not attempted Exhibition Programselected answer incorrect not attempted 22,624selected answer incorrect Community Art Educationselected answer correct not attempted 22,624selected answer incorrect Management and Generalselected answer correct not attempted 14,032selected answer incorrect Fund Raisingselected answer correct not attempted 8,418selected answer incorrect O 11(b) Investment IncomeWith Donor Restrictionsselected answer correct 1,301selected answer correct not attempted Net Assets With Donor Restrictionsselected answer correct not attempted 1,301selected answer correct P 11(c) Net Assets With Donor Restrictionsselected answer correct 14,845selected answer incorrect not attempted Net Assets ReleasedSatisfaction of Purpose RestrictionWith Donor Restrictionsselected answer correct not attempted 14,845selected answer incorrect Q 11(d) Net Assets ReleasedSatisfaction of Purpose RestrictionWithout Donor Restrictionsselected answer correct 9,171selected answer incorrect not attempted Net Assets Without Donor Restrictionsselected answer correct not attempted 9,171selected answer incorrect 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, 2019, is shown here ART LEAGUE Post closing Trial Balance June 30, 2019 Debits Credits Cash $ 2,455 Short term Investments 13,711 Grants Receivable 6,200 Prepaid Expense 1,300 Equipment 10,145 Allowance for DepreciationEquipment $ 2,586 Long Term InvestmentsWith Donor Restrictions 5,927 Accounts Payable and Accrued Expenses 2,809 Deferred Revenue 4,400 Net Assets Without Donor Restrictions 9,171 Net Assets With Donor RestrictionsPrograms 14,845 Net Assets With Donor RestrictionsPermanent Endowment 5,927 Totals $ 39,738 $ 39,738 Following is information summarizing the transactions of the Art League for the year ended June 30, 2020 During the year, unrestricted cash was received from the following sources grantsdetermined to be non exchange transactions, $13,200, of which $5,400 had been reported as receivable on June 30, 2019 annual contributions from fund drives and other unrestricted gifts, $14,021 membership dues, $17,085 tuition and fees for educational workshops, $7,134 and sales of members' art, $12,170, of which 20 percent represents commissions earned by the Art League Interest earnings were as follows interest on investments without donor restrictions totaled $702 interest on investments restricted for programs totaled $941 interest on investments in the permanent endowment totaled $360 (these investment earnings are restricted for program use) Grants receivable of $5,340 were recorded at year end on a grant to complete and deliver a survey of art programs conducted in its county (the grant was determined to be an exchange transaction) Of the $5,340 the Art League had invoiced, $3,280 related to work done this year with the remaining $2,060 to be completed the first part of the new year and thus was reported as deferred revenue at year end The Art League receives free rent from the city at an estimated value of $19,600 a year Expenses incurred during the year were as follows salaries and fringe benefits, $48,500 utilities $3,240 printing and postage, $1,470 and miscellaneous, $800 As of year end, the balances of the following accounts were Prepaid Expenses, $1,000, and Accounts Payable and Accrued Expenses, $2,986 During the year, $3,700 of short term investments were sold, with the proceeds used to purchase two computers and a printer at a cost of $2,995 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 for the provision of free art instruction for children with disabilities was provided at a cost of $985 This amount was allocated to community art education Depreciation on equipment in the amount of $1,802 was recorded 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 Proceeds of art sales, net of commissions charged by the Art League, totaled $9,736 This amount was paid to member artists during the year All nominal accounts were closed at year end ART LEAGUE Statement of Activities For the Year Ended June 30, 2020 Without Donor Restrictions With Donor Restrictions Total Revenue and Other Support Contributions $12,400 $12,400 Membership Dues 0 Tuition and Fees 13,941 13,941 Commission Revenue 0 Investment Income 0 Net Assets Released from Restriction Satisfaction of Purpose 0 0 0 Total Revenue and Other Support 0 26,341 26,341 Expenses Exhibition Program 0 Community Art Education 0 Management and General 0 Fund Raising 0 0 Total Expenses 0 0 0 Decrease in Net Assets 0 26,341 26,341 Beginning Net Assets 0 Ending Net Assets $0 $26,341 $26,341

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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)

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, 2019, is shown here.

ART LEAGUE
Post-closing Trial Balance
June 30, 2019
	Debits		Credits
Cash	$	2,455
Short-term Investments		13,711
Grants Receivable		6,200

Prepaid Expense		1,300
Equipment		10,145
Allowance for DepreciationEquipment				$	2,586
Long-Term InvestmentsWith Donor Restrictions		5,927
Accounts Payable and Accrued Expenses					2,809
Deferred Revenue					4,400
Net Assets Without Donor Restrictions					9,171
Net Assets With Donor RestrictionsPrograms					14,845
Net Assets With Donor RestrictionsPermanent Endowment					5,927
Totals	$	39,738		$	39,738

Following is information summarizing the transactions of the Art League for the year ended June 30, 2020.

During the year, unrestricted cash was received from the following sources: grantsdetermined to be non-exchange transactions, $13,200, of which $5,400 had been reported as receivable on June 30, 2019; annual contributions from fund drives and other unrestricted gifts, $14,021; membership dues, $17,085; tuition and fees for educational workshops, $7,134; and sales of members' art, $12,170, of which 20 percent represents commissions earned by the Art League.
Interest earnings were as follows: interest on investments without donor restrictions totaled $702; interest on investments restricted for programs totaled $941; interest on investments in the permanent endowment totaled $360 (these investment earnings are restricted for program use).
Grants receivable of $5,340 were recorded at year-end on a grant to complete and deliver a survey of art programs conducted in its county (the grant was determined to be an exchange transaction). Of the $5,340 the Art League had invoiced, $3,280 related to work done this year with the remaining $2,060 to be completed the first part of the new year and thus was reported as deferred revenue at year end.
The Art League receives free rent from the city at an estimated value of $19,600 a year.
Expenses incurred during the year were as follows: salaries and fringe benefits, $48,500; utilities $3,240; printing and postage, $1,470; and miscellaneous, $800. As of year-end, the balances of the following accounts were Prepaid Expenses, $1,000, and Accounts Payable and Accrued Expenses, $2,986.
During the year, $3,700 of short-term investments were sold, with the proceeds used to purchase two computers and a printer at a cost of $2,995. 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 for the provision of free art instruction for children with disabilities was provided at a cost of $985. This amount was allocated to community art education.
Depreciation on equipment in the amount of $1,802 was recorded.
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.
Proceeds of art sales, net of commissions charged by the Art League, totaled $9,736. This amount was paid to member artists during the year.
All nominal accounts were closed at year-end.

rev: 11_27_2019_QC_CS-191779

Required

Prepare journal entries to record these transactions. Expense transactions should be initially recorded by object classification, unless otherwise instructed; in entry 9, expenses will be allocated to functions.(If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Do not round intermediate calculations. Round your answers to the nearest whole dollar amount.)

No	Transaction	General Journal	Debit	Credit
A	01	Cashselected answer correct	not attempted	42,589selected answer incorrect
		Grants Receivableselected answer correct	not attempted	11,540selected answer incorrect
		Membership Duesselected answer correct	not attempted	17,085selected answer correct
		Tuition and Feesselected answer correct	not attempted	7,134selected answer correct
		Commission Revenueselected answer correct	not attempted	2,434selected answer correct
		Payable to Artistsselected answer correct	not attempted	9,736selected answer correct

B	02	Cashselected answer correct	2,003selected answer correct	not attempted
		Investment IncomeWithout Donor Restrictionsselected answer correct	not attempted	702selected answer correct
		Investment IncomeWith Donor Restrictionsselected answer correct	not attempted	1,301selected answer correct

C	03	Grants Receivableselected answer correct	5,340selected answer correct	not attempted
		ContributionsWithout Donor Restrictionsselected answer incorrect	not attempted	3,280selected answer correct
		Deferred Revenueselected answer correct	not attempted	2,060selected answer correct

D	04	Rent Expenseselected answer correct	19,600selected answer correct	not attempted
		ContributionsWithout Donor Restrictionsselected answer correct	not attempted	19,600selected answer correct

E	05	Salaries and Benefits Expenseselected answer correct	48,500selected answer correct	not attempted
		Utilities Expenseselected answer correct	3,240selected answer correct	not attempted
		Printing and Posting Expenseselected answer correct	1,470selected answer correct	not attempted
		Miscellaneous Expenseselected answer correct	800selected answer correct	not attempted
		Cashselected answer correct	not attempted	50,042selected answer incorrect
		Prepaid Expensesselected answer correct	not attempted	1,000selected answer incorrect
		Accounts Payable and Accrued Expensesselected answer correct	not attempted	2,986selected answer incorrect

F	6(a)	Cashselected answer correct	3,700selected answer correct	not attempted
		Short-Term Investmentsselected answer correct	not attempted	3,700selected answer correct

G	6(b)	Equipmentselected answer correct	2,995selected answer correct	not attempted
		Cashselected answer correct	not attempted	2,995selected answer correct

H	6(c)	No Transaction Recorded

I	7(a)	Community Art Educationselected answer correct	985selected answer correct	not attempted
		Cashselected answer correct	not attempted	985selected answer correct

J	7(b)	Net Assets ReleasedSatisfaction of Purpose RestrictionWith Donor Restrictionsselected answer correct	985selected answer correct	not attempted
		Net Assets ReleasedSatisfaction of Purpose RestrictionWithout Donor Restrictionsselected answer correct	not attempted	985selected answer correct

K	08	Depreciation Expenseselected answer correct	1,802selected answer correct	not attempted
		Allowance for DepreciationEquipmentselected answer correct	not attempted	1,802selected answer correct

L	09	Exhibition Programselected answer correct	not attempted	not attempted
		Community Art Educationselected answer correct	not attempted	not attempted
		Management and Generalselected answer correct	not attempted	not attempted
		Fund-Raisingselected answer correct	not attempted	not attempted
		Rent Expenseselected answer correct	not attempted	19,600selected answer correct
		Salaries and Benefits Expenseselected answer correct	not attempted	48,500selected answer correct
		Utilities Expenseselected answer correct	not attempted	3,240selected answer correct
		Printing and Posting Expenseselected answer correct	not attempted	1,470selected answer correct
		Miscellaneous Expenseselected answer correct	not attempted	800selected answer correct
		Depreciation Expenseselected answer correct	not attempted	1,802selected answer correct

M	10	Payable to Artistsselected answer correct	9,736selected answer correct	not attempted
		Cashselected answer correct	not attempted	9,736selected answer correct

N	11(a)	ContributionsWithout Donor Restrictionsselected answer correct	19,600selected answer incorrect	not attempted
		Membership Duesselected answer correct	17,085selected answer correct	not attempted
		Tuition and Feesselected answer correct	7,134selected answer correct	not attempted
		Commission Revenueselected answer correct	2,434selected answer correct	not attempted
		Investment IncomeWithout Donor Restrictionsselected answer correct	702selected answer correct	not attempted
		Net Assets Without Donor Restrictionsselected answer correct	9,171selected answer incorrect	not attempted
		Exhibition Programselected answer incorrect	not attempted	22,624selected answer incorrect
		Community Art Educationselected answer correct	not attempted	22,624selected answer incorrect
		Management and Generalselected answer correct	not attempted	14,032selected answer incorrect
		Fund-Raisingselected answer correct	not attempted	8,418selected answer incorrect

O	11(b)	Investment IncomeWith Donor Restrictionsselected answer correct	1,301selected answer correct	not attempted
		Net Assets With Donor Restrictionsselected answer correct	not attempted	1,301selected answer correct

P	11(c)	Net Assets With Donor Restrictionsselected answer correct	14,845selected answer incorrect	not attempted
		Net Assets ReleasedSatisfaction of Purpose RestrictionWith Donor Restrictionsselected answer correct	not attempted	14,845selected answer incorrect

Q	11(d)	Net Assets ReleasedSatisfaction of Purpose RestrictionWithout Donor Restrictionsselected answer correct	9,171selected answer incorrect	not attempted
		Net Assets Without Donor Restrictionsselected answer correct	not attempted	9,171selected answer incorrect

ART LEAGUE
Post-closing Trial Balance
June 30, 2019
	Debits		Credits
Cash	$	2,455
Short-term Investments		13,711
Grants Receivable		6,200

Prepaid Expense		1,300
Equipment		10,145
Allowance for DepreciationEquipment				$	2,586
Long-Term InvestmentsWith Donor Restrictions		5,927
Accounts Payable and Accrued Expenses					2,809
Deferred Revenue					4,400
Net Assets Without Donor Restrictions					9,171
Net Assets With Donor RestrictionsPrograms					14,845
Net Assets With Donor RestrictionsPermanent Endowment					5,927
Totals	$	39,738		$	39,738

Following is information summarizing the transactions of the Art League for the year ended June 30, 2020.

During the year, unrestricted cash was received from the following sources: grantsdetermined to be non-exchange transactions, $13,200, of which $5,400 had been reported as receivable on June 30, 2019; annual contributions from fund drives and other unrestricted gifts, $14,021; membership dues, $17,085; tuition and fees for educational workshops, $7,134; and sales of members' art, $12,170, of which 20 percent represents commissions earned by the Art League.
Interest earnings were as follows: interest on investments without donor restrictions totaled $702; interest on investments restricted for programs totaled $941; interest on investments in the permanent endowment totaled $360 (these investment earnings are restricted for program use).
Grants receivable of $5,340 were recorded at year-end on a grant to complete and deliver a survey of art programs conducted in its county (the grant was determined to be an exchange transaction). Of the $5,340 the Art League had invoiced, $3,280 related to work done this year with the remaining $2,060 to be completed the first part of the new year and thus was reported as deferred revenue at year end.
The Art League receives free rent from the city at an estimated value of $19,600 a year.
Expenses incurred during the year were as follows: salaries and fringe benefits, $48,500; utilities $3,240; printing and postage, $1,470; and miscellaneous, $800. As of year-end, the balances of the following accounts were Prepaid Expenses, $1,000, and Accounts Payable and Accrued Expenses, $2,986.
During the year, $3,700 of short-term investments were sold, with the proceeds used to purchase two computers and a printer at a cost of $2,995. 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 for the provision of free art instruction for children with disabilities was provided at a cost of $985. This amount was allocated to community art education.
Depreciation on equipment in the amount of $1,802 was recorded.
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.
Proceeds of art sales, net of commissions charged by the Art League, totaled $9,736. This amount was paid to member artists during the year.
All nominal accounts were closed at year-end.

ART LEAGUE
Statement of Activities
For the Year Ended June 30, 2020
	Without Donor Restrictions	With Donor Restrictions	Total
Revenue and Other Support:
Contributions		$12,400	$12,400
Membership Dues			0
Tuition and Fees		13,941	13,941
Commission Revenue			0
Investment Income			0
Net Assets Released from Restriction Satisfaction of Purpose			0
			0
			0
Total Revenue and Other Support	0	26,341	26,341
Expenses:
Exhibition Program			0
Community Art Education			0
Management and General			0
Fund-Raising			0
			0
Total Expenses	0	0	0
Decrease in Net Assets	0	26,341	26,341
Beginning Net Assets			0
Ending Net Assets	$0	$26,341	$26,341