Electric Mid&Hi Fired Ceramics2024-03-29T12:27:34ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewterhttps://storage.ning.com/topology/rest/1.0/file/get/3139413178?profile=RESIZE_48X48&width=48&height=48&crop=1%3A1https://cone6pots.ning.com/forum/topic/listForContributor?groupUrl=accounting-101-for-ceramic-artists&user=lzndzmxhezzb&feed=yes&xn_auth=noWeek 6 Tutorials and Activitiestag:cone6pots.ning.com,2012-04-23:2103784:Topic:611362012-04-23T02:02:58.754ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p>This set of materials completes the course materials for the class. Though the formal class is ending, group members are encouraged to stay on as members, and to post new accounting questions that are bound to arise, and to answer questions by others. The materials will be opened up to the general membership after our last class, so there may be a flurry of questions. Please do not ask George to take all of them on.</p>
<p>By now you should not be at a loss when you think about how to go…</p>
<p>This set of materials completes the course materials for the class. Though the formal class is ending, group members are encouraged to stay on as members, and to post new accounting questions that are bound to arise, and to answer questions by others. The materials will be opened up to the general membership after our last class, so there may be a flurry of questions. Please do not ask George to take all of them on.</p>
<p>By now you should not be at a loss when you think about how to go about tracking the transactions that are commonly occurring with your business. We have not covered all of the activities that you may need to include in your books, such as sales tax, and payroll if you have employees. Payroll is beyond the scope of our introduction to accounting.</p>
<p>The Web site <a href="http://www.ehow.com/how_6066826_account-sales-tax.html">http://www.ehow.com/how_6066826_account-sales-tax.html</a> offers the following concise plan for accounting for sales tax.</p>
<ol>
<li>“Add the sales tax to the cost of equipment you purchase for your <a href="http://www.ehow.com/how_6066826_account-sales-tax.html">business</a>. For instance, if you buy a cash register for $200 and must pay 8 percent in sales tax ($16), record the cost of the cash register on your books as $216. You do not need to distinguish purchase price from sales tax in your books.</li>
<li>Depreciate the asset as normal, treating the value of the asset as the purchase price plus sales tax. For instance, you should depreciate the cash register as if its value is $216 rather than $200.</li>
<li>Include the sales tax you charge customers as income in your gross receipts only if your state imposes sales tax on you (the merchant) rather than on the customers. If the state requires that you collect sales tax imposed on the buyer, the price you charge should be recorded on the books without sales tax, and the amount collected as sales tax should be recorded as a liability.</li>
<li>Remit sales tax to your state on the appropriate schedule set up by your state. If sales tax is imposed on you (the merchant), record sales tax as an expense. If sales tax is imposed on the buyer and you are required to collect it on behalf of the state, offset the entry you made in the liabilities section.”</li>
</ol>
<p>Read more: <a href="http://www.ehow.com/how_6066826_account-sales-tax.html#ixzz1sdZRaCij">How to Account for Sales Tax | eHow.com</a> <a href="http://www.ehow.com/how_6066826_account-sales-tax.html#ixzz1sdZRaCij">http://www.ehow.com/how_6066826_account-sales-tax.html#ixzz1sdZRaCij</a></p>
<p>There are several more activities you do need to know about to generate accurate current reports on your business’ health. These involve closing out your books for a given period of time. You have to do this at the end of the year for your tax reporting, but it really should be done every month or two so you know how your business is doing. For a rundown of the procedures, read the articles at:</p>
<p><a href="http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P06_1500">http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P06_1500</a></p>
<p><a href="http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P06_1530">http://www.toolkit.com/small_business_guide/sbg.aspx?nid=P06_1530</a></p>
<p>You will find that some account balances such as revenue and expenses will be transferred to Owner's Equity, to start out the new period with a zero balance. </p>
<p> </p>
<p>Finally, if you want to learn more about different categories of business management, the beancounter site has more tutorials to look through at:</p>
<p><a href="http://www.dwmbeancounter.com/moodle/course/index.php">http://www.dwmbeancounter.com/moodle/course/index.php</a></p> Week 5 Tutorials and Activitiestag:cone6pots.ning.com,2012-04-15:2103784:Topic:607852012-04-15T00:08:14.718ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p>Read the Introductory lesson and Lesson 3 in the dwmbeancounter tutorials. This will give you a better grasp of what accounts you need to set up for your own business on waveaccounting.com</p>
<p><a href="http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=14">http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=14</a></p>
<p>Lessons 4 & 5 are very short, so you may want to look at them too. Our businesses are all small and relatively simple so there is really no need…</p>
<p>Read the Introductory lesson and Lesson 3 in the dwmbeancounter tutorials. This will give you a better grasp of what accounts you need to set up for your own business on waveaccounting.com</p>
<p><a href="http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=14">http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=14</a></p>
<p>Lessons 4 & 5 are very short, so you may want to look at them too. Our businesses are all small and relatively simple so there is really no need to worry about setting up a chart of accounts numbering system that is covered in lessons 1 & 2. </p>
<p>Activities for this week.</p>
<ol>
<li>Develop your chart of accounts and set them up on waveaccounting.com. </li>
<li>Have the list ready to share with the group on Wednesday April 18, or post in your workspace prior to the discussion.</li>
<li>Start entering your own transactions into the online accounting system (or if you don't plan to use it yourself, do Joe Potter's transactions from our exercises at the end of week 3.</li>
</ol>
<p>Next week will be the final week of this class unless there are too many unresolved issues that come up in our final two chat sessions. We will look a little deeper into the waveaccounting system and we will look at the idea of closing out the books for an accounting period.</p>
<p>Talk with you on Wednesday.</p> Week 4 Tutorials and Activitiestag:cone6pots.ning.com,2012-04-04:2103784:Topic:598702012-04-04T03:47:53.577ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p><span class="font-size-4">Week 4 Project - Part 1</span></p>
<p>Task 1 - Understand the financial reports presented in Lesson 6 at beancounter's website, especially balance sheet and income statement - you will create and use these very often. The others are for more long term information and for business planning.<br></br>Task 2 -Exercises - use the corrected ending data that I posted for Week 3 (attached below) to generate an accurate balance sheet for Joe Potter's business following the last…</p>
<p><span class="font-size-4">Week 4 Project - Part 1</span></p>
<p>Task 1 - Understand the financial reports presented in Lesson 6 at beancounter's website, especially balance sheet and income statement - you will create and use these very often. The others are for more long term information and for business planning.<br/>Task 2 -Exercises - use the corrected ending data that I posted for Week 3 (attached below) to generate an accurate balance sheet for Joe Potter's business following the last transaction. Also generate an income statement for the period of March 1 through March 30. If you find that you cannot complete either of these statements, because you lack data, immediately send a message to the group from the group's main page, advising us as to what is needed.<br/><span class="font-size-4">Part 2</span> - Set up an account at wave accounting.com with your userID and password, along with basic information about your own business (business name, address, etc.), and take a look at the different tools that are available to you.</p>
<p>Sunday is Easter - Not a good time to meet for a chat session. We can change one or all the chat sessions to any of Monday, Wednesday, or Thursday evenings. I can be available for any 90 minutes between 6:30 and 11:30 pm EDT, or we can try for another weekend time. We really need at least one reasonably well attended chat session each week to have any chance of covering the most common questions that people might have. So please try to make this one commitment to the class, if at all possible. <br/>George</p> Week 3 Chat Session Transcript 4/1/2012tag:cone6pots.ning.com,2012-04-01:2103784:Topic:596552012-04-01T20:02:49.462ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p><b>Wes </b> Hello Troy. Here we are again. I found those transactions confusing. Hope I'm not alone.</p>
<p> </p>
<p><b>Troy</b><b> </b>Hello Wes, how did you do? I haven't studied so hard in years. I could not get my stuff to balance, so I know that I got something in the wrong place.</p>
<p> </p>
<p><b>Wes</b> Well, I'm not sure. Spent most of my time just trying to figure out what went where. Didn't even get to the balance stage. I think I'm going to have to put more time in…</p>
<p><b>Wes </b> Hello Troy. Here we are again. I found those transactions confusing. Hope I'm not alone.</p>
<p> </p>
<p><b>Troy</b><b> </b>Hello Wes, how did you do? I haven't studied so hard in years. I could not get my stuff to balance, so I know that I got something in the wrong place.</p>
<p> </p>
<p><b>Wes</b> Well, I'm not sure. Spent most of my time just trying to figure out what went where. Didn't even get to the balance stage. I think I'm going to have to put more time in this.</p>
<p> </p>
<p><b>Troy</b><b> </b>I have lost track of how many times I have read the lessons but I am starting to get it. I still get confused about where to put some numbers.</p>
<p> </p>
<p><b>George </b>Hi, be with you in a couple of minutes</p>
<p> </p>
<p><b>Wes</b> Troy, your ribs are beautiful. Do you sell?</p>
<p> </p>
<p><b>Troy</b><b> </b>Yes, I have a store on Etsy that works pretty good for me.</p>
<p> </p>
<p><b>Wes</b> Will check it out.</p>
<p>12:06 PM</p>
<p> </p>
<p><b>Troy</b><b> </b>I also have a blog where I write about cups that I purchase online. It is Bungartstudios.blogspot.com And I have just starting writing for Studio Potters Archive Blog</p>
<p> </p>
<p><b>Wes</b> Checked your blog. What's the latter?</p>
<p>12:10 PM</p>
<p> </p>
<p><b>George </b>Hi again</p>
<p> </p>
<p><b>Troy </b>Hello <b>George </b></p>
<p><b>George </b>no women?</p>
<p> </p>
<p><b>Wes</b> Hi George, just us.</p>
<p>12:13 PM</p>
<p> </p>
<p><b>George </b>Guess what? I just finished my inputs and they don't balance either.</p>
<p>Are you using google docs or Excel?</p>
<p> </p>
<p><b>Troy </b>Good! I don't know where I went wrong but I am sure that it must be in how I categorized numbers in the T accounts.</p>
<p> </p>
<p><b>Wes</b> I'm in Excel, but ran into problems adding transactions without adding lines to the spreadsheet. When you do that you distort the rest of the sheet or am I doing something wrong?</p>
<p>12:16 PM</p>
<p> </p>
<p><b>George </b>My apologies -- Some of the T-accounts weren't long enough for all the transx</p>
<p> </p>
<p><b>Troy</b><b> </b>It was a whole new lesson just to figure out how to add lines to my spreadsheet in google docs but I got it.</p>
<p> </p>
<p><b>George </b>I wanted to not have you think about the software too much</p>
<p>i failed</p>
<p> </p>
<p><b>Wes</b> Hopefully an accounting package will take our lack of sophistication into accout.</p>
<p> </p>
<p><b>Troy</b><b> </b>Wes, besides adding lines you need change which lines total up to the balance at the bottom of the T account you added lines to.</p>
<p> </p>
<p><b>George </b>In google docs it looks like you can only add lines. In excel you can add just a range of cells and push everything below down to make room</p>
<p>12:20 PM</p>
<p> </p>
<p><b>George </b>Let me post just the transaction sheet to talk about</p>
<p>12:21 PM</p>
<p> </p>
<p><b>Troy</b><b> </b>I have the transaction sheet printed out in front of me.</p>
<p> </p>
<p><b>George </b>How about you, Wes</p>
<p> </p>
<p><b>Wes</b> Yes. Same here</p>
<p> </p>
<p><b>George </b>OK lets talk about them #18 first. Actually any questions about the first 17 transactions</p>
<p> </p>
<p><b>Wes</b> I was stuck on 18 until I realized Paypal is an asset account.</p>
<p> </p>
<p><b>Troy</b><b> </b>The first 17 made sense to me.</p>
<p> </p>
<p><b>George </b>Right - you had to create a new T-account for it</p>
<p> </p>
<p><b>Wes</b> Same here on the first 17</p>
<p> </p>
<p><b>Troy</b><b> </b>it is easy to understand when I see it, it is just when I have to make the decisions that it gets confusing.</p>
<p> </p>
<p><b>George </b>so 18 was trivial after you knew it was just like a checking account</p>
<p> </p>
<p><b>Troy</b><b> </b>I did not create any new T accounts</p>
<p> </p>
<p><b>Wes</b> Right</p>
<p> </p>
<p><b>George </b> Did you debit cash</p>
<p> </p>
<p><b>Troy</b><b> </b>Yes I put it into cash. I saw that paypal was a category but I did not think to make my own</p>
<p>12:30 PM</p>
<p> </p>
<p><b>Troy</b><b> </b>In the long run it still adds up to an asset, right?</p>
<p> </p>
<p><b>George </b>It is definitely more like a bank account than cash on hand. But all are assets</p>
<p>It affects Transx 19 . . .</p>
<p> </p>
<p><b>Troy </b>Okay</p>
<p> </p>
<p><b>George . .</b> where we take all our loot to the bank</p>
<p> </p>
<p><b>Wes</b> I didn't see that before, but now makes sense.</p>
<p>12:33 PM</p>
<p> </p>
<p><b>George </b>So on transx18 - debit paypal, credit Sales Revenue</p>
<p> </p>
<p><b>Wes</b> Yes</p>
<p> </p>
<p><b>George </b>What's the amount on transx 19?</p>
<p> </p>
<p><b>Wes</b> $1330+th $50=1380</p>
<p> </p>
<p><b>Troy</b><b> </b>I got $1380. and I put it into cash/credit</p>
<p> </p>
<p><b>George </b>right - but w/o the $50 for me, because I added the extra account</p>
<p> </p>
<p><b>Wes</b> To checking?</p>
<p> </p>
<p><b>Troy</b><b> </b>Okay, I understand</p>
<p> </p>
<p><b>George </b>Debit checking, credit cash -- cash = $100</p>
<p> </p>
<p><b>Troy</b><b> </b>I took it from cash/credit and I debited to checking.</p>
<p> </p>
<p><b>George </b>#20 - trick question</p>
<p> </p>
<p><b>Wes</b> Looked straight forward. Debit checking and cash, credit sales?</p>
<p> </p>
<p><b>Troy</b><b> </b>I added it all to cash. debit/ increase <b>Troy </b>and I credited it to revenue equity acct</p>
<p> </p>
<p><b>George </b>I count all money in hand as cash, but you could do it your way, Wes</p>
<p> </p>
<p><b>George </b>but you have to split it to 2 accounts</p>
<p> </p>
<p><b>Wes</b> Not sure I understand. Which two. I put it in Revenue Equity/Sales</p>
<p> </p>
<p><b>George </b>Revenue is the right area, Troy, but not right detail account - Sales Revenue</p>
<p> </p>
<p><b>George </b>If you gathered all the proceeds and went directly to the bank - checking would be right as the debit for the full $740</p>
<p>12:47 PM</p>
<p> </p>
<p><b>Troy </b>account 401 is sales and above that it is called revenue equity account</p>
<p> </p>
<p><b>George </b>Revenue is a category that includes several detail accounts</p>
<p> </p>
<p><b>Wes</b> Have to take a break. Minor emergency. Will be back and get caught up.</p>
<p> </p>
<p><b>George </b> 401 was the right T-account to credit. All the revenue detail T-accounts will add together to make up revenue</p>
<p> </p>
<p><b>Troy</b><b> </b>Transx 21 debit to cash and credit to 115 notes receivable, an asset account</p>
<p> </p>
<p><b>George </b>Right – and transx 22 is the same but credit accounts receivable</p>
<p> </p>
<p><b>Troy </b>transx 22 -- Debit to cash and credit to 110 accounts receivable / asset account</p>
<p> </p>
<p><b>George </b>Transx 23 -- dr _________ cr____________?</p>
<p> </p>
<p><b>George </b>cash and rental recpts?</p>
<p> </p>
<p><b>Troy</b><b> </b>I didn't enter 23 but my notes say I did. cash debit and revenue credit</p>
<p>12:58 PM</p>
<p> </p>
<p><b>Troy</b><b> </b>Okay I had it in rental but never entered it to cash</p>
<p> </p>
<p><b>George </b>It <b>is</b> a lot of T-accounts to track visually and to cross check debits and credits.</p>
<p>24 is another trick question. Many businesses have an account for returns, but we don't - What did you do?</p>
<p>1:03 PM</p>
<p> </p>
<p><b>Troy</b><b> </b>For transx 24 -- I debit sales $50</p>
<p> </p>
<p><b>George </b>That's what I did</p>
<p> </p>
<p><b>Troy</b><b> </b>I thought that I credited cash but I never entered it</p>
<p>1:05 PM</p>
<p> </p>
<p><b>George </b>Did you credit checking?</p>
<p> </p>
<p><b>Wes</b> I'm back. On 23 I did cash and rental receipts</p>
<p> </p>
<p><b>Troy</b><b> </b>yes, I found it!</p>
<p> </p>
<p><b>Wes</b> On transx 24 -- I debited sales and credited checking</p>
<p>1:08 PM</p>
<p> </p>
<p><b>George </b>Ok 25-7 are basic expenses, but I wanted to let you know about supplies.</p>
<p>If you purchase supplies that are used up right away that is an expense.</p>
<p> </p>
<p><b>Troy</b><b> </b>On 25 -- I credited cash and debited studio & shipping supplies</p>
<p> </p>
<p><b>George </b>Right</p>
<p> </p>
<p><b>Wes</b> When do supplies go into owner's equity or do they?</p>
<p> </p>
<p><b>George </b>If you buy enough to last for a longer time, then it is an asset</p>
<p> </p>
<p><b>Wes</b> OK, it's a judgment call?</p>
<p> </p>
<p><b>George </b>Do you want to have to inventory what is left over in 6 months.</p>
<p>1:13 PM</p>
<p> </p>
<p><b>Wes</b> In my case I guess I will put these types in expense categories.</p>
<p> </p>
<p><b>George </b>If I buy enough paper to last 5 years, I'll need to inventory it every time I need to do an accurate balance sheet.</p>
<p> </p>
<p><b>George </b>So we should create a supplies expense account that is distinct from the asset account.</p>
<p> </p>
<p><b>George </b>What about Transx 28?</p>
<p>1:18 PM</p>
<p> </p>
<p><b>Wes</b> $1000 debit to Accounts receiveable, credit to sales?</p>
<p> </p>
<p><b>Troy</b><b> </b>debit assets accounts receivables and credits 401 revenue equity account</p>
<p> </p>
<p><b>George </b>both right!</p>
<p>Any questions about the last 4 transactions?</p>
<p> </p>
<p><b>Wes</b> Only 31, debit to checking, then I created a Revenue Equity account/Class Income. Have a feeling this wasn't right.??</p>
<p>1:22 PM</p>
<p> </p>
<p><b>Troy </b>cash debit sales 401 credit</p>
<p> </p>
<p><b>George </b>That's a good move. Sales would work, but you might want to track your income streams separately.</p>
<p> </p>
<p><b>Troy </b>Okay</p>
<p> </p>
<p><b>George </b>I credited sales, feeling like I didn't want to make yet another T-account!</p>
<p> </p>
<p><b>Troy</b><b> </b>is 32 Debit to mortgages payables</p>
<p> </p>
<p><b>George </b>Yes</p>
<p> </p>
<p><b>Troy</b><b> </b>Okay, I think that I have it!</p>
<p> </p>
<p><b>Wes</b> I'm good...getting it.</p>
<p> </p>
<p><b>George </b>Wait -- that mortgage question</p>
<p>1:26 PM</p>
<p> </p>
<p><b>Wes</b> Kind of tricky. Do we know what portion of the mortgage is business or other?</p>
<p> </p>
<p><b>George </b>Assume 100% business. We have to credit checking. . .</p>
<p> </p>
<p><b>Troy </b>yes</p>
<p> </p>
<p><b>George </b>so we must debit mortgages payable, but that is a liability account that has a normal credit balance. . . I should have started that T-account with some balance payable, so our debit wouldn't make the balance go negative.</p>
<p> </p>
<p><b>Wes</b> That was my problem, couldn't find such an account.</p>
<p> </p>
<p><b>Troy</b><b> </b>That would make sense, I sweated over that one.</p>
<p>1:32 PM</p>
<p> </p>
<p><b>George </b>We will ignore interest for now, and reduce the balance by our payment.</p>
<p> </p>
<p><b>Wes</b> OK</p>
<p> </p>
<p><b>George </b>I will make some adjustments, find and correct my mistakes and repost the sheets tonight.</p>
<p> </p>
<p><b>Wes</b> Thanks again George.</p>
<p> </p>
<p><b>George </b>Please be thinking about what accounts you will need for your own businesses</p>
<p> </p>
<p><b>Troy </b>Thanks George<b> </b></p>
<p><b> </b></p>
<p><b>George </b>You can go ahead and sign on to waveaccounting.com</p>
<p>Got a hot date?</p>
<p>Talk to you guys later, you are really helping me put this material together.</p>
<p> </p>
<p><b>Wes</b> Will do. Got to get out in the studio. P.s my emergency was rounding up chickens. a few were out and we have opportunistic hawks (some hot date!)</p>
<p> </p>
<p><b>George </b>Thanks for participating. Bye</p> Week 3 Tutorials and Activities 3/26 - 4/1/2012tag:cone6pots.ning.com,2012-03-26:2103784:Topic:592422012-03-26T03:03:27.402ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p><span class="font-size-4"><strong>Part 1 - Continue studying Tutorials 3-6.</strong></span></p>
<p><span class="font-size-4"><span class="font-size-4">Retake the quizzes until you have a good handle on them.</span></span></p>
<p><span class="font-size-4">________________________________________________</span></p>
<p><span class="font-size-4"><strong>Part 2 - Analyze and Record Joe Potter's Transactions</strong></span></p>
<p>Attached is an Excel Workbook with 2 worksheets. The first is a…</p>
<p><span class="font-size-4"><strong>Part 1 - Continue studying Tutorials 3-6.</strong></span></p>
<p><span class="font-size-4"><span class="font-size-4">Retake the quizzes until you have a good handle on them.</span></span></p>
<p><span class="font-size-4">________________________________________________</span></p>
<p><span class="font-size-4"><strong>Part 2 - Analyze and Record Joe Potter's Transactions</strong></span></p>
<p>Attached is an Excel Workbook with 2 worksheets. The first is a list of transactions and the accounts affected by those transactions. The second has a list of detail accounts and T accounts set up for each. The T accounts have the existing transactions listed.</p>
<p>Your first task for the week is to verify that the entries are correct and then confirm that the totaled transactions will balance when brought back to the accounting equation.</p>
<p>On Thursday evening I will add new entries to the list of transactions and you will spread them to their T accounts and recheck the balances after you've finished. We will discuss this in our chat session on Sunday</p>
<p>For those of you who do not have Excel, I have converted the file to pdf format so you can print it out and fill it in by hand. If you copy the Excel file to to your computer, I believe you can open and work on it online, using a google docs spreadsheet. It would be great if one of you could do that and then reply with the steps to do that. </p>
<p> </p>
<p><span class="font-size-4">I know it will be very foolish to have a chat session next Sunday, but we are known to be foolhardy sometimes.</span></p>
<p><span class="font-size-4"><br/></span></p>
<p>Note the 2 files place here on Monday have been removed and replaced with these two updated and improved versions. If you use excel or google docs the T accounts will automatically recalculate their balances. The Account numbers are now expanded to give you room to add your own account numbers in the appropriate range.</p>
<p>------------------------------------------------------------------------------------</p>
<p><span class="font-size-4"><strong>Note as of Friday evening 3/30/2012 11:10 EDT</strong></span> the files attached below (C6P group corrected trxs) have the transactions through number 17 all clarified, corrected and balanced to the accounting equation which is included as a final page. This would be the best version to use to complete the transactions listed for the week without having to search for the errors that I made in the earlier versions. :-) You might have to create a T-account to accomodate one of the transactions. If you are using Excel or google docs, just copy the whole range of an appropriate T-account and paste it to a blank area of the page. Then change the account number, account name, and delete any existing transactions. Test with a couple debits and credits to make sure the formulas are working correctly.</p> Week 2 Chat session Transcript 3/25/2012 -- (Too long to post as a reply to Week 2 discussion)tag:cone6pots.ning.com,2012-03-25:2103784:Topic:592302012-03-25T20:52:51.343ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p class="message">Troy: I have read all lessons but I have not memorized very much.</p>
<p class="message"> </p>
<p class="message">George: Well, fearless leader only got through 1 1/2 lessons to my chagrin, but I think I have them under control.</p>
<p class="message"> </p>
<p class="message">Troy: Just when it starts to make sense the tutorial adds another layer of stuff and nocks me back down, but I am learning so it is good.</p>
<p class="message"> </p>
<p class="message">George: Anyone…</p>
<p class="message">Troy: I have read all lessons but I have not memorized very much.</p>
<p class="message"> </p>
<p class="message">George: Well, fearless leader only got through 1 1/2 lessons to my chagrin, but I think I have them under control.</p>
<p class="message"> </p>
<p class="message">Troy: Just when it starts to make sense the tutorial adds another layer of stuff and nocks me back down, but I am learning so it is good.</p>
<p class="message"> </p>
<p class="message">George: Anyone starting late is not going to see the preceding material</p>
<p class="message">George: This chat is not up to snuff for us.</p>
<p class="message">Ok, that brings us to now and we can start talking, without loosing anything</p>
<p class="message">Wes, Troy, are you here?</p>
<p><b> </b></p>
<p><b>Wes Stack </b> I'm here.</p>
<p align="right">12:10 PM</p>
<p><b>Beverly Beu Haas </b> Hi George and Wes. Sorry to be late. I had sinus surgery this past week and was unable to get to homework. I hope it's okay to listen in, though.</p>
<p> </p>
<p><b>June Kinsinger </b> i am here</p>
<p> </p>
<p>George: Wes and Troy say they read all, but did not retain too spectacularly</p>
<p> </p>
<p><b>June Kinsinger </b> i agree with others...the exercises were great but referring back and redoing helps grasp the tasks</p>
<p>George: I read less but have a fair handle</p>
<p> </p>
<p><b>Wes Stack </b> I would be anxious to put the concepts into action. Think I'll learn them better that way.</p>
<p><b> </b></p>
<p><b>Troy Bungart</b> I just need to find time to keep re reading it.</p>
<p> </p>
<p><b>June Kinsinger </b> i found taking each task and looking at it as a single entry helps the most having a sample printed out to refer back to helps keep things straight also</p>
<p> </p>
<p><b>Troy Bungart </b> I know a lot more now than before I started this.</p>
<p> </p>
<p><b>June Kinsinger </b> yes....and the more entries you make and repeating them helps understand the double entry process</p>
<p class="message"> </p>
<p class="message">George: The material will not make a whole lot of sense until we use it, but we can't really use it until we have accounts in hand.</p>
<p align="right">12:16 PM</p>
<p><b>Wes Stack </b> I haven't looked at Wave accounting, but would setting up our accounts using that software make us focus on the "how to"?</p>
<p class="message"> </p>
<p class="message">George: Let's do that right here. What would be our asset accounts? Please number them</p>
<p> </p>
<p><b>Wes Stack </b> Asset accounts for what business?</p>
<p class="message">George: Our own or Joe Potter</p>
<p class="message">1. Cash</p>
<p><b> </b></p>
<p><b>Wes Stack</b></p>
<p class="message">2. Equipment</p>
<p> </p>
<p><b>June Kinsinger</b></p>
<p class="message">2. pottery wheel</p>
<p class="message">3. chemiclas</p>
<p class="message">opps</p>
<p> </p>
<p><b>Wes Stack</b></p>
<p class="message">4.clay</p>
<p> </p>
<p>George:</p>
<p class="message">5 Checking Account</p>
<p class="message">6. Paypal Account</p>
<p> </p>
<p><b>Wes Stack </b> I don't use Paypal. How is this account an asset. Do you make a deposit?</p>
<p> </p>
<p class="message"><b>June Kinsinger </b> it can hold cash payments on sales and can be used to pay payables</p>
<p> </p>
<p><b>Wes Stack </b> OK</p>
<p><b> </b></p>
<p><b>Troy Bungart </b> I use paypal, mine is an asset</p>
<p class="message"> </p>
<p class="message">George: When people buy my stuff on etsy the money collects there</p>
<p> </p>
<p><b>Wes Stack</b></p>
<p class="message">Learned something already!</p>
<p> </p>
<p class="message">George: </p>
<p class="message">7. Accounts receivable</p>
<p align="right">12:24 PM</p>
<p><b>June Kinsinger</b></p>
<p class="message">liabilities? accounts payable</p>
<p> </p>
<p class="message">George: Not done with assets yet</p>
<p> </p>
<p><b>June Kinsinger</b></p>
<p class="message">ooops</p>
<p>George: Anyone?</p>
<p> </p>
<p><b>Troy Bungart </b> is stock an asset?</p>
<p class="message">George: Is it part of the business or separate from the business?</p>
<p> </p>
<p><b>Troy Bungart </b> It is what is going to be sold hopfuly</p>
<p class="message"> </p>
<p class="message">George: Your Stock is inventory - I have an accountant's input on that.</p>
<p align="right">12:28 PM</p>
<p class="message"> </p>
<p><b>Troy Bungart </b> Okay. right, if I counted materials and finished product the materials would be counted twice.</p>
<p><b> </b></p>
<p><b>June Kinsinger </b> inventory would be asset. i was thinking of stock in a company outside of your personal business</p>
<p align="right">12:31 PM</p>
<p class="message">George: He said leave everything as raw materials until it is going out the door as finished goods. Everything is tracked as cost of goods sold.</p>
<p> </p>
<p><b>Troy Bungart </b> okay</p>
<p class="message"> </p>
<p class="message">George: Finished pots on the shelf are nothing but clay and glaze.</p>
<p align="right">12:33 PM</p>
<p class="message">George: The remaining typical asset accounts would be office supplies, Furniture, buildings, land, vehicles</p>
<p> </p>
<p class="message">George: OK, we have a list of asset accounts. Some are actually items within accounts. Equipment is an account containing wheel, kiln, pug mill, etc.</p>
<p class="message">Can someone condense and repost the asset accounts?</p>
<p> </p>
<p><b>June Kinsinger </b> i can</p>
<p> </p>
<p><b>Wes Stack </b> Would there be accounts for chemicals, clay, etc. or would they be under one account such as "materials"?</p>
<p align="right">12:38 PM</p>
<p class="message">George: Good observation - Raw materials would be a good account</p>
<p> </p>
<p><b>June Kinsinger </b> 1. checking acct 2. raw materials 3. equipment 4. paypal acct <br/> 5. accounts receivable</p>
<p> </p>
<p><b>Troy Bungart</b></p>
<p class="message">cash, checking, paypal, office supplies, equipment, materials, furniture, buildings, land, vehicles</p>
<p> </p>
<p class="message">George: Do any of you in your businesses have any other assets that don't fit well under categories we have named?</p>
<p align="right">12:42 PM</p>
<p><b>Troy Bungart </b> I don't think so.</p>
<p> </p>
<p><b>Wes Stack</b></p>
<p class="message">No, but I've never accounted for furniture and land in my accounting. How do those work?</p>
<p align="right">12:45 PM</p>
<p class="message">George: They don't enter into your profit/loss picture, but they can be used in your balance sheet to show the value of your business in the event you need to get a loan to expand your business.</p>
<p> </p>
<p><b>June Kinsinger </b> our accountant uses a %age calculated by the size of my shop space to the actual size of our property</p>
<p><b>Wes Stack </b> Thanks both. Good to know!</p>
<p> </p>
<p><b>June Kinsinger </b> that same percentage is used when calculating taxes as a %age of utilities and such.</p>
<p align="right">12:48 PM</p>
<p class="message">George: Potters generally find they can't make a successful business just making and selling pots. They often diversify by teaching classes and or offering studio space to other potters.</p>
<p align="right">12:50 PM</p>
<p class="message">George: Anything else about assets?</p>
<p> </p>
<p><b>June Kinsinger </b> does anyone know what a going rate would be for private lessons?</p>
<p align="right">12:53 PM</p>
<p><b>Beverly Beu Haas </b> still here</p>
<p align="right">12:54 PM</p>
<p class="message">George: A one on one private lesson should relate to your skill as a potter, as a teacher, the quality of the workspace - all highly variable.</p>
<p> </p>
<p><b>June Kinsinger </b> thanks<b>. </b> Are we continueing next week?</p>
<p class="message"> </p>
<p class="message">George: Absolutely - I think we could spend another half hour to finish accounts today.</p>
<p> </p>
<p><b>Wes Stack </b> let's do it</p>
<p class="message">George: I will post the remaining chat session for anyone who has to leave.</p>
<p> </p>
<p><b>Troy Bungart </b> I am still here</p>
<p class="message"> </p>
<p class="message">George: OK what would be the liability accounts?</p>
<p> </p>
<p><b>Wes Stack </b> Accounts payable</p>
<p><b>June Kinsinger</b></p>
<p class="message">insrance</p>
<p class="message">utilities</p>
<p class="message">website</p>
<p><b>Troy Bungart</b></p>
<p class="message">show fees</p>
<p class="message">rent</p>
<p class="message"><b>George:</b> No, those are expenses</p>
<p> </p>
<p><b>Troy Bungart </b> loans</p>
<p> </p>
<p class="message">George: except accounts payable</p>
<p class="message">Notes payable</p>
<p class="message">Mortgages payable</p>
<p> </p>
<p><b>Wes Stack </b> Is mortgage a liability or expense?</p>
<p class="message"> </p>
<p class="message">George: Both?</p>
<p align="right">1:02 PM</p>
<p class="message">George: The unpaid balance is definitely a liability. Where would a mortgage payment (for business) be a debit and where a credit? Let's come back to that one.</p>
<p class="message"> </p>
<p class="message">Now we need to break down the Owners Equity sub classes.</p>
<p class="message">First Revenues</p>
<p> </p>
<p><b>Wes Stack </b> goods sold</p>
<p> </p>
<p><b>Troy Bungart </b> amounts billed or sold for services or products</p>
<p align="right">1:10 PM</p>
<p class="message">OK and services sold - classes, firing space,</p>
<p class="message">Any other Income from the operations of the business?</p>
<p> </p>
<p><b>Troy Bungart </b> you could sell some raw materials if you are buying in bulk</p>
<p> </p>
<p class="message">George: Rental income is a possibility. I know potters who do that</p>
<p class="message"> </p>
<p><b>Wes Stack </b> How about value of pieces donated to charities?</p>
<p> </p>
<p class="message">George: No revenue out of that.</p>
<p align="right">1:14 PM</p>
<p><b>Troy Bungart </b> what about intellectual property, say I sell a book or dvd</p>
<p class="message">publish a book or dvd</p>
<p align="right">1:15 PM</p>
<p>George: That would be revenue</p>
<p> </p>
<p class="message">I have an unexpected guest I must visit with, so must cut this short. Can you all complete a list of accounts? June and I will combine them into one we will use for Joes Pottery and then provide you with a list of transactions to correctly account for. I will post this by Wednesday evening.</p>
<p class="message">Just post your lists in your own workspaces</p>
<p> </p>
<p><b>Troy Bungart </b> Thanks George!</p>
<p> </p>
<p><b>Wes Stack </b> Will do. Thanks much.</p>
<p> </p>
<p class="message">George: We will continue with the lessons 4-6</p>
<p> </p> Week 2 Tutorials and Activities 3/19 - 3/24tag:cone6pots.ning.com,2012-03-18:2103784:Topic:587892012-03-18T20:02:03.009ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p><span class="font-size-4"><strong>Part 1</strong></span> The main tutorials for the basic accounting portion of the class are at</p>
<p><a href="http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13">http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13</a></p>
<p> </p>
<p><strong>Task 1</strong> - Complete Lesson 3 (Debits and Credits), and take the 2 skills tests and the quiz that are linked at the bottom of the lesson.</p>
<p><strong>Task 2</strong> - Complete Lesson…</p>
<p><span class="font-size-4"><strong>Part 1</strong></span> The main tutorials for the basic accounting portion of the class are at</p>
<p><a href="http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13">http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13</a></p>
<p> </p>
<p><strong>Task 1</strong> - Complete Lesson 3 (Debits and Credits), and take the 2 skills tests and the quiz that are linked at the bottom of the lesson.</p>
<p><strong>Task 2</strong> - Complete Lesson 4 (Recording Business Transactions). Start by taking the <a href="http://www.dwmbeancounter.com/tutorial/Quizzes/IntroMid.html">Basic Accounting Review Quiz</a> near the top of the tutorial and then work through the tutorial. Finish by taking the <a href="http://www.dwmbeancounter.com/tutorial/SkillsTests/DrCrSkills2.html">Debit/Credit Skills Test III</a> at the bottom of the lesson.</p>
<p><strong>Task 3</strong> - Complete Lesson 5 (The General Ledger and Journals), and take the <a href="http://www.dwmbeancounter.com/tutorial/Quizzes/Intro5.html">Basic Bookkeeping-General Ledger and Journals</a> quiz at the bottom of the lesson.</p>
<p><strong>Task 4</strong> - Complete Lesson 6 (Financial Statements), and take the <a href="http://www.dwmbeancounter.com/tutorial/Quizzes/Intro6.html">Financial Statements</a> quiz and the bottom of the lesson.</p>
<p><b>Lesson 7 is a review of all we have covered thus far. We will asses on Thursday, March 22, whether to include it this week or delay it, and have a full week of review next week.</b></p>
<hr/><p>No group exercises until group meets Sunday 3/25 to assess progress.</p> Week 1 Tutorials and Activities.tag:cone6pots.ning.com,2012-03-11:2103784:Topic:583782012-03-11T19:44:12.594ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p><span class="font-size-4"><strong>Part 1</strong></span> The main tutorials for the basic accounting portion of the class are at</p>
<p><a href="http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13">http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13</a></p>
<p>FYI - About the quizzes and tests that accompany the tutorials.</p>
<ul>
<li>The bookkeeping and accounting quizzes and games require Adobe's Free Macromedia Flash Player which is normally already installed on…</li>
</ul>
<p><span class="font-size-4"><strong>Part 1</strong></span> The main tutorials for the basic accounting portion of the class are at</p>
<p><a href="http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13">http://www.dwmbeancounter.com/moodle/mod/resource/view.php?id=13</a></p>
<p>FYI - About the quizzes and tests that accompany the tutorials.</p>
<ul>
<li>The bookkeeping and accounting quizzes and games require Adobe's Free Macromedia Flash Player which is normally already installed on your computer.<br/> <a href="http://www.adobe.com/shockwave/download/download.cgi?P1_Prod_Version=ShockwaveFlash" target="_blank">Get Adobe's Free Flash Player</a>.</li>
<li>The Skill Tests require Javascript to be enabled in your browser. Most computers also already have this feature enabled.</li>
</ul>
<p><strong>Task 1</strong> - The page linked above is the Introduction chapter (our first lesson) and has tabs that link to additional lessons.</p>
<p>After you have completed reading the Introduction, take the 3 quizzes at the bottom of the page. You can retake them until you get 100%.</p>
<p><strong>Task 2</strong> - Complete Lesson 1, and take the 6 quizzes that are linked at the bottom of the lesson.</p>
<p><strong>Task 3</strong> - Complete Lesson 2, and take the 2 skills tests that are linked at the bottom of the lesson.</p>
<p>____________________________________________________________________</p>
<p><strong><span class="font-size-4">Part 2</span></strong></p>
<p><strong>Week 1 Group Exercise</strong>. The exercise is posted as a reply to this discussion topic below. Other replies might push it off page 1, so you might have to go to a second page.</p> Troy Bungart's Accounting 101 workspacetag:cone6pots.ning.com,2012-03-09:2103784:Topic:580932012-03-09T17:23:16.510ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p>I have high hopes for this group. I am really looking forward to this program.</p>
<p>I have high hopes for this group. I am really looking forward to this program.</p> Karen Wosoba's workspacetag:cone6pots.ning.com,2012-03-07:2103784:Topic:579802012-03-07T01:58:28.254ZGeorge Lewterhttps://cone6pots.ning.com/profile/GeorgeLewter
<p>crossing my fingers that I have this right:)</p>
<p> </p>
<p>crossing my fingers that I have this right:)</p>
<p> </p>