Overview
This week we will begin learning how to keep the financial records
(books
) of a small business. I'm going to try out a learning resource
suggested by James in the Accounting Stuff video we watched,
The Accounting Game: Basic Accounting Fresh from the Lemonade Stand.
You'll let me know if it works for you, and we'll decide together if we stick
with it or look for alternatives.
Tuesday, November 25th
Classwork
Use class time today to study the vocabulary from chapter 1 that we talked about last class. We'll have a quiz on this when we return from Thanksgiving break.
Happy Thanksgiving!
Friday, November 21st
Classwork
Today in class we will talk about the new ideas from our last reading.
Let's start with something we definitely want to memorize:
ASSETS = LIABILITIES + OWNER'S EQUITY
We'll review how our book introduces this equation with: What we have = Who owns it. In story in the book, the owner (the kid) starts with $5 of his own money and $10 of his mom's money. The $10 is a liability, since he has to pay it back to him mom. The $5 is owner's equity, since it is his own money. That gives him starting assets of $15.
You should add the three bolded items to your notes under a vocabulary section.
Here are some other important vocabulary words introduced in this chapter:
- orginial investment
- notes payable
- inventory
- sales
- cost of goods sold
- expenses
- balance sheet
Wednesday, November 19th
Classwork
We'll begin class with the promised short quiz based on the first accounting concepts from last class.
Our brave, but admittedly corny
entreprenuers Yamilet, Madi, Jeidy and
Molly have founded the Poppy Popcorn Cooperative and are working on their
start-up plans for their business.
After our quiz we will review some of the key ideas from our last reading. One thing I really like about this book is that it makes it about as clear as it can which things it thinks are important. To quote:
You know an an important rule about this financial scorecard. The left side will always, ALWAYS equal the right side!
Repeat this rule, please. Tape it to your forehead. Put it under your pillow at night, so you will remember it in your sleep:
THE LEFT SIDE ALWAYS EQUALS THE RIGTH SIDE!
LOL, I think the authors want us to remember that, don't you?
Monday, November 17th
Classwork
We'll start class with a short quiz on the Accounting Stuff video you watched in class last week.
After that, I'll talk about a book I want to try with you as a resource for learning basic accounting principles, The Accounting Game: Basic Accounting Fresh from the Lemonade Stand. I'll explain why I chose it and what I like (and don't like) about it.
After that we'll all (me included) take a Pre-Test from that book. Lastly, each group will be given copy of the first part of the first chapter, and together as a group you will produce a summary of it and email it to me.