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.

1. 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.
2. 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).
3. 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.
4. The Art League receives free rent from the city at an estimated value of $19,600 a year.
5. 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.
6. 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.
7. 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.
8. Depreciation on equipment in the amount of $1,802 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 $9,736. This amount was paid to member artists during the year.
11. All nominal accounts were closed at year-end.

rev: 11_27_2019_QC_CS-191779

Required

1. 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.

1. 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.
2. 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).
3. 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.
4. The Art League receives free rent from the city at an estimated value of $19,600 a year.
5. 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.
6. 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.
7. 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.
8. Depreciation on equipment in the amount of $1,802 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 $9,736. This amount was paid to member artists during the year.
11. 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