In: Accounting
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 | $ | 2,910 | |||||
Short-term Investments | 12,411 | ||||||
Grants Receivable | 4,900 | ||||||
Prepaid Expense | 1,105 | ||||||
Equipment | 9,495 | ||||||
Allowance for Depreciation—Equipment | $ | 2,456 | |||||
Long-Term Investments—With Donor Restrictions | 5,797 | ||||||
Accounts Payable and Accrued Expenses | 2,679 | ||||||
Deferred Revenue | 3,100 | ||||||
Net Assets Without Donor Restrictions | 9,041 | ||||||
Net Assets With Donor Restrictions—Programs | 13,545 | ||||||
Net Assets With Donor Restrictions—Permanent Endowment | 5,797 | ||||||
Totals | $ | 36,618 | $ | 36,618 | |||
Following is information summarizing the transactions of the Art
League for the year ended June 30, 2020.
Prepare a statement of financial position for the year ended June 30, 2020.
Statement of Financial Position | ||
Assets | Amount($) | Amount($) |
Cash | 2,665 | |
Short term Investment | 9,361 | |
Grant receivable | 5,230 | |
prepaid Expenses | 870 | |
Asset restricted | ||
Investment | 5,797 | |
Equipment( less depreciation Allowance) | 8,232 | |
Total Assest | 32,155 | |
Liabilities | ||
Account payable & accrued Expenses | 2,791 | |
Deferred revenue | 5,030 | |
Total Liability | 7,821 | |
Net Asset | ||
Unrestricted | 6,244 | |
Temporary Restricted | 12,293 | |
Permanently restricted | 5,797 | |
Total Liability | 24,334 | |
Total Liability + Net Asset | 32,155 |
Workings
Cash | Amnt($) | Amnt($) |
Opening Balance | 2,910 | |
Add- Sl No 1 (11,900+13,891+16,435+7,004+12,040) | 61,270 | |
Add- Sl No 2 (689+928+347) | 1,964 | |
Less - Sl No 5 [47,200+3,110+1,340+670-(1,105-870)-(2,791-2,679) | 51,973 | |
Add- Sl No 6 | 3,050 | |
Less- Sl No 6 | 2,865 | |
Less- Sl No 7 | 855 | |
Less- Sl No 10 | 10,836 | |
Closing balance (bal. fig.) | 2,665 | |
Total | 69,194 | 69,194 |
Short term Investment | Amnt($) | Amnt($) |
Opening Balance | 12,411 | |
Less- Sl No 6 | 3,050 | |
Closing balance (bal. fig.) | 9,361 | |
Total | 12,411 | 12,411 |
Grant Receivable | Amnt($) | Amnt($) |
Opening Balance | 4,900 | |
Less Sl No 1 | 4,750 | |
Add- Sl No 3 | 5,080 | |
Closing balance (bal. fig.) | 5,230 | |
Total | 9,980 | 9,980 |
Pre Paid Expenses | Amnt($) | Amnt($) |
Opening Balance | 1,105 | |
Less Sl No 5 | 235 | |
Closing balance (bal. fig.) | 870 | |
Total | 1,105 | 1,105 |
Equipment | Amnt($) | Amnt($) |
Opening Balance | 9,495 | |
Less - Accumulated Depreciation | 2,456 | |
Net Balance | 7,039 | |
Add - Cash purchase | 2,865 | |
Less - Accumulated Depreciation | 1,672 | |
Net Balance | 8,232 | |
Deferred Revenue | Amnt($) | Amnt($) |
Opening Balance | 3,100 | |
add-Sl No 3 | 1,930 | |
Closing Balance | 5,030 | 5,030 |
Unrestricted $ | Temporary Restrcited-$ | |||
Contribution - Unrestricted (Sl No. 1,3&4) [(11,900-4,750+13,891)+3,150+18,300)] | 42,491 | |||
Membership dues | 16,435 | |||
Tution fees | 7,004 | |||
Commission Revenue (12,040*10%) | 1,204 | |||
Investment Income - unrestricted | 689 | 1,275 | ||
Net Asset released from restrcition - Satisfaction purpose (855+1,672) | 2,527 | -2,527 | ||
Total Revenue & other support-A | 70,350 | -1,252 | ||
Expenses (18,300+47,200+3,110+1,340+670+1,672+855)= 73,147 | ||||
Exhibition Program- 73,147*30% | 21,944 | |||
Community Art education program- 73,147*30% | 21,944 | |||
Management & general- 73,147*25% | 18,287 | |||
Fund Raising - 73,147*15% | 10,972 | |||
Toatl Expenses-B | 73,147 | |||
Increase ( Decrease ) in net assets | -1,942 | -1,252 | ||
Net Asset Opening | 9,041 | 13,545 | ||
Ending net Asset | 7,099 | 12,293 |
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