June Kinsinger's Bookkeeping workspace

[June Kinsinger]

Looking forward to this group.  Thanks,

[June Kinsinger]

I have taken accounting, though a few years back, and I do use excel everyday at my day job.  I am willing to help with anything I could possibly help with.  Looks like a good group is being established. 

[George Lewter]

If, as we go through the tutorials, you could help create short exercises that will illustrate the lesson, that would be great.  I'm in the same situation - took accounting four years ago, didn't use it, and pretty much forgot it.  Should make it easier to relearn. We might want to set up a dummy business that we can all look at and work on categorizing and posting the transactions to accounts. Would you like to start on that?  

We could take it that a hobby potter has decided to go into business, bringing her equipment and supplies into the business and starting production. Selling one on one, then to a gallery, then on etsy, and maybe teaching some classes? 

[June Kinsinger]

That may be interesting and helpful for others.  Do you think then we would need to go as far as expensing out the large equipment also.  That may be a little much, what do you think?  I can write up a beginning business paragraph to start with if wanted.  I can also list out several chemicals that a potter may have in their shop along with weight and costs.  This may take me a while so let me know what you think.  Thanks for you confidence in me :-)  this may be fun to get started.  June

[George Lewter]

A 1 yr old kiln, an 8 yr old wheel, and an ancient but working clay mixer might be good as the capital equipment, with the kiln purchased on credit  and still owing 18 months worth of payments. This combination will allow us to think of how assets affect the balance sheet, and can be liabilities at the same time.

Let's just lump all raw materials together initially.  I'm trying to get an expert to coach us near the end of the bookkeeping introduction, on inventory, as I really don't have a clue on raw materials, partially made ware, finished goods that could be considered either wholesale or retail, and how to account for them.

I'm thinking a list of maybe 30 items of  assets, expenses, liabilities, and revenue. A checking account, a credit card only used for business. Expense and revenue transactions spaced over a 3 month period of time. We might want to bring in business use of the home to get rent/mortgage and utilities items.

Go ahead and see what you come up with.  I have Excel 2003, so as long as you aren't using 2010 you can upload a file here that I can look at and manipulate. If you are using 2010 you will have to upload it as a web page that I can read only. We will convert to web pages for the class to use.

[June Kinsinger]

George,  Here is what I have so far.  I am pasting it here but have it saved in a word document.  Let me know what you think and any suggestions you might have.

Thanks, June

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Local Potter wants to set up business and track their income and expenses.

Joe Potter starts with the following equipment, supplies, etc.

 

Capital Equipment

1 year old Kiln purchased at $2700.00 still owing $2,000 with 18 months to pay.

8 year old pottery wheel purchased for $1,500.00 and paid off.

15 yr old clay mixer valued at $400.00

3 year old pug mill purchased for $2,900.00 still owing $600 with 9 months to pay.

 

Supplies

Raw chemicals for glaze making valued at $1,200 – nothing due

 

Expenses

Shop utilities

               Gas

               Electric

               Telephone

               Water

Websight fee

Mortgage payment of studio space attached to primary residence    $565.00/monthly

 

Insurance

               Equipment and contents  $20,000 value     monthly payment $67.00

               Structure valued at $30,000    monthly payment $125.00

 

Revenue

               Items sold to customers on daily basis

               Outstanding invoices totaling  $1,245.00