The Art League Is a Notforprofit Organization Dedicated to Promoting the Arts Within the Community

1. Business
2. Bookkeeping
3. The Art League is a not-for-turn a profit arrangement defended to promoting

The Art League is a not-for-profit organization dedicated to promoting

The Art League is a non-for-turn a profit system defended to promoting the arts within the customs. At that place are two programs conducted by the Art League: (1) exhibition and sales of members’ fine art (referred to as Exhibition) and (2) Community Art Education. Activities of the Fine art League are conducted past a part-fourth dimension administrator, a part-time secretary-bookkeeper, and several part-fourth dimension volunteers. The volunteers greet visitors, monitor the security of the showroom hall, and handle the sales of art to the public. Fine art on exhibit is considered the property of the fellow member artists, not the Art League.

The post-closing trial residual for the Art League as of June xxx, 2013, is shown here.

Following is information summarizing the transactions of the Art League for the year ended June xxx, 2014.
1. During the yr, unrestricted cash was received from the following sources: grants, $11,600, of which $4,600 had been reported as receivable on June 30, 2013; almanac contributions from fund drives and other unrestricted gifts, $13,861; membership ante, $16,285; tuition and fees for educational work-shops, $6,974; and sales of members’ art, $12,010, of which twenty percent represents commissions earned past the Fine art League.
two. Interest earnings were as follows: involvement on unrestricted investments totaled $686; involvement on temporarily restricted investments totaled $925; interest on permanently restricted investments totaled $344 (these investment earnings are temporarily restricted for program utilise).
3. Grants receivable as of twelvemonth-cease totaled $v,020, of which $3,120 was earned in the current year (thus unrestricted) and $1,900 was reported equally deferred acquirement.
4. The Art League receives free rent from the urban center at an estimated value of $eighteen,000 a year.
5. Expenses incurred during the year were as follows: salaries and fringe benefits, $46,900; utilities $3,080; postage and supplies, $1,310; and miscellaneous, $640. As of year-end, the balances of the following accounts were: Prepaid Expenses, $840; Accounts Payable and Accrued Expenses, $2,746.
vi. During the year, $2,900 of short-term investments were sold, with the proceeds used to purchase two computers and printer at a cost of $2,835. The resources used were temporarily restricted for the purchase of equipment. It is the policy of the Art League to record the equipment equally temporarily restricted net assets.
7. In accordance with the terms of the Art League endowment, income earned past the endowment for the provision of gratis art didactics for handicapped children was provided at a cost of $825. This amount was allocated to community art instruction.
8. Depreciation on equipment in the corporeality of $1,642 was recorded.
9. Expenses for the year were allocated 30 percent to Exhibition Program, xxx percent to Community Fine art Pedagogy, 25 per centum to Direction and General Expenses, and 15 percent to Fund-Raising. (Circular to the nearest dollar.)
10. Proceeds of fine art sales, cyberspace of commissions charged by the Art League, totaled $9,608. This amount was paid to member artists during the yr.
xi. All nominal accounts were closed a year-end.

Required
a. On the advice of its contained auditor, the Art League does not record support and expenses related to the value of services donated by the volunteers. Discuss the criteria for recognition of donated services, and comment on the auditor’due south likely rationale for non recognizing them in this instance.
b. Make all necessary journal entries to record these transactions. Expense transactions should exist initially recorded by object classification, unless otherwise instructed; in entry 9, expenses volition be allocated to functions.
c. Prepare a statement of activities for the year concluded June 30, 2014.
d. Ready a argument of financial position for the twelvemonth concluded June 30,2014.

1. Business
2. Accounting

The Art League is a not-for-turn a profit system defended to promoting

The Art League is a not-for-profit organization dedicated to promoting the arts within the community. There are two programs conducted by the Fine art League: (1) exhibition and sales of members’ fine art (referred to as Exhibition) and (2) Customs Art Didactics. Activities of the Art League are conducted by a part-time ambassador, a part-time secretarial assistant-bookkeeper, and several office-time volunteers. The volunteers greet visitors, monitor the security of the exhibit hall, and handle the sales of art to the public. Fine art on exhibit is considered the holding of the fellow member artists, not the Art League.

The mail service-closing trial balance for the Art League as of June 30, 2013, is shown hither.

Following is information summarizing the transactions of the Art League for the year ended June 30, 2014.
ane. During the year, unrestricted cash was received from the following sources: grants, $11,600, of which $4,600 had been reported as receivable on June 30, 2013; annual contributions from fund drives and other unrestricted gifts, $13,861; membership dues, $16,285; tuition and fees for educational work-shops, $6,974; and sales of members’ art, $12,010, of which 20 percentage represents commissions earned by the Art League.
2. Interest earnings were every bit follows: interest on unrestricted investments totaled $686; interest on temporarily restricted investments totaled $925; involvement on permanently restricted investments totaled $344 (these investment earnings are temporarily restricted for program use).
3. Grants receivable every bit of year-cease totaled $v,020, of which $3,120 was earned in the electric current year (thus unrestricted) and $ane,900 was reported as deferred revenue.
4. The Art League receives free rent from the city at an estimated value of $18,000 a twelvemonth.
5. Expenses incurred during the twelvemonth were as follows: salaries and fringe benefits, $46,900; utilities $iii,080; postage and supplies, $ane,310; and miscellaneous, $640. As of year-end, the balances of the following accounts were: Prepaid Expenses, $840; Accounts Payable and Accrued Expenses, $two,746.
six. During the year, $two,900 of short-term investments were sold, with the proceeds used to purchase two computers and printer at a cost of $2,835. The resource used were temporarily restricted for the purchase of equipment. It is the policy of the Art League to record the equipment as temporarily restricted internet avails.
vii. In accordance with the terms of the Fine art League endowment, income earned by the endowment for the provision of costless art instruction for handicapped children was provided at a price of $825. This amount was allocated to customs art education.
8. Depreciation on equipment in the corporeality of $ane,642 was recorded.
9. Expenses for the year were allocated 30 percent to Exhibition Program, 30 pct to Customs Art Education, 25 per centum to Direction and General Expenses, and xv percent to Fund-Raising. (Round to the nearest dollar.)
10. Proceeds of art sales, net of commissions charged past the Art League, totaled $9,608. This amount was paid to fellow member artists during the year.
11. All nominal accounts were closed a twelvemonth-end.

Required
a. On the advice of its contained auditor, the Art League does not record support and expenses related to the value of services donated by the volunteers. Discuss the criteria for recognition of donated services, and comment on the auditor’due south likely rationale for not recognizing them in this instance.
b. Make all necessary journal entries to tape these transactions. Expense transactions should be initially recorded past object classification, unless otherwise instructed; in entry 9, expenses will be allocated to functions.
c. Prepare a statement of activities for the twelvemonth ended June 30, 2014.
d. Set up a statement of fiscal position for the year ended June 30,2014.

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