Running Head NARRATIVE ESSAY Narrative EssayDaisy N.docx

Running Head: NARRATIVE ESSAY
Narrative Essay
Daisy Nealon
Edith Grevious
English 1010
June 11, 2020
When one is in, their youthful is bound with a load of decisions
that one has to make. It happens that one is very vulnerable at
this age because they tend to have a high willingness to explore
the world and their capacity to make their decisions. This, at
times, is very dangerous because if you get one in problems.
Being in school is not necessarily important to impact us with
educational knowledge. Despite learning, being in school is also
supposed to teach about critical life skills such as decision
making. In my case, I have learned this the hard way; in several
cases, I found myself making bad decisions and to be specific,
money-related decisions.
Sometimes back, I developed a temporal interest in
photography, and as a result, I started making some videos with
my phone. My phone could serve the purpose perfectly, but I
was something that could not let me appreciate what I derived
from my phone. As a result, I started comparing what my phone
was offering and what a pure camera could offer me. This is
where I lost it all and was one of my biggest financial setbacks.
I overlooked my phone as anyone else could have done in such a
situation, and I was looking for ways to save money and buy a
camera for my passion for photography.

It did not take me long before I had all that I needed. I was
ready to buy a camera, and this is where everything gets out of
my control, and I knew I had lost it all. Although I had passions
in photography, I never wanted to spend much on a camera
bearing in mind how cameras turn to be expensive. Therefore, I
wanted a cheap camera that would offer me whatever I needed.
To make my decision right, I visited physical shots dealing with
digital cameras to compare prices. I did this for only a day, and
it was more of a window than assessing features and capabilities
that come along with different cameras. This was very fast, and
it was not without consequences. I did not give myself enough
time to analyze different features that could have met my needs
right. When I returned home, is started looking for cameras that
were being sold by e-commerce retailers. At this point, I was
messing up more, but I could not hold myself because I was
under the control of my emotions.
From online dealers, there were very many cameras that could
feed my Google search. Some of them were priced way lower
than I could have expected. I got caught in his price without my
knowledge; somehow, I was able to convince myself so fast that
I had come across the perfect deals to meet my camera needs. I,
therefore, continued surfing until I identified uncommon
cameras in the market place, but its appearance resembled
cameras used by most people. I thought this could be a perfect
camera, and I forgot it is not all bout its appearance but its
capability.
Foolishly, I made the decision to buy the camera, and it was
being shipped from abroad. When the camera was delivered, I
was happy for my successful purchase, but little did I knew I
had messed it all. I decided to check out at features and physical
capabilities of this camera. It was frustrating because it did not
meet even 20% of what I could have expected from the camera.
I felt the loss, and I could not bear it for weeks. I had foolishly
lost close to $240 on a camera that I was very sure it will never

serve my purpose.
However, after a short period of time, I was able to get over my
loss. This was one of my biggest lessons in life, and despite the
loss, I learned how it could be powerful and meaningful if at
all, someone can forgive themselves and start it all over again. I
learned to accept the logic of quality over price. In my purchase
decision, I had decided to purchase a camera through an online
short cut to pay for less. However, it turned out to be a big
financial decision, and I learned that you get what you pay for.
Furthermore, I learned that regardless whenever a financial
decision or not; I will have to appreciate the fact that I should
avoid making my decisions out of my emotions or my
frustrations. This is the easiest way I can make bad decisions,
some of which I might not be able to go over.
Page 1 of 23
I. Title: Project 1: Small Business Accounting using
QuickBooks Online
II. Introduction:
Your good friend Kobe has always expressed interest in opening
his own art studio. He has
been painting and selling his artwork for years and already has a
good customer base. In
January of this year he started the process of formally setting up
a business named Kobe’s

Krafts; he filed for an Employee Identification Number (EIN) in
February. Kobe found and rented
an art studio on March 1st, and has been cleaning, painting, and
setting up the space ever since.
The grand opening was April 1, 2020.
Kobe’s Krafts sells Kobe’s original artwork and prints of his
original artwork that he purchases
from a print shop. The original artwork and prints are inventory
items. Kobe also accepts custom
orders from customers, which are considered commissioned
sales. Commissioned artwork is
artwork that is created for a particular customer based on their
specification. Kobe agreed to
allow a few artist friends display and sell their artwork on
consignment. Artwork on consignment
is owned by the artist who created it and therefore is not
recorded as inventory on the accounting
records of Kobe’s Krafts. However, when a consignment
artwork is sold, Kobe’s Krafts keeps a
percentage of the sale as consignment income.
Kobe knows you are going to school for your master’s degree in
accounting and has asked for
your help setting up and using QuickBooks Online (QBO). You
agree to help set up the QBO
business account and complete the first month of transactions.
You are not familiar with QBO,
but you know it will be beneficial to your accounting career to
learn QBO because it is the most
widely used financial accounting platform for small business in
the United States. To feel more
confident with QBO, you decide to seek guidance and
collaborate with some of your classmates
in your MS degree program at UMGC. You recall a few
mentioned working as an accountant for

small business clients.
Kobe has is interested in using the following QBO features:
▪ Sales Receipts/Invoices
▪ Purchase Orders/Inventory tracking
▪ Bills and Bill Pay
Eager to get started, you carefully read the Steps to Completion
and review all QBO learning
resources before beginning.
Competencies assessed by this project: Note: graduate
accounting program competencies are
tightly coupled with the AICPA pre-certification core
competencies framework.
1) Measurement, analysis, and interpretation: Identify and apply
appropriate, reliable and
verifiable measurements to analyze data for a given purpose and
intended use.
2) Reporting: Identify the appropriate content and communicate
clearly and objectively to the
intended audience the work performed and the results as
governed by professional standards,
required by law or dictated by the business environment.
3) Technology and Tools: Identify and utilize relevant
technology and tools to analyze data, efficiently
and effectively perform assigned tasks as well as support other
competencies.

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III. Steps to Completion:
For most of the steps below, you will have the option of
viewing a short video or referring to
the Intuit Education PPT, all page references given below.
Step 1 – Begin communicating with your study group members,
which is a requirement of this
project. You will discuss the project together, but will submit
individual files.
Step 2 – Set up your QBO account.
Go to http://www.intuiteducation.com/ and follow the
instructions for student registration for
QuickBooks online.
Step 3 - Download Intuit Education PPT
▪ Skim over the first part of the PPT to learn about navigating
QBO (the dashboard) (Pages
17- 23).
Step 4 – Set up the account and settings
▪ View the Video:
o “How to Navigate in QuickBooks” -
https://www.youtube.com/watch?v=vNdZmf_nLZs
▪ Review: Account and Setting, Intuit Education PPT, Pages 27
– 44. NOTE: the important
information is how to get to account and settings, which can be

found on page 28.
Appendix A covers all the settings that you need to adjust for
Kobe’s Krafts. The purpose
of the project is for you to become comfortable with the
program, not to become a QBO
expert. However, if you want to read all the details, feel free,
but it is not required for the
purposes of this project.
▪ Using the information found in Appendix A, set up Kobe’s
Krafts account in QBO.
Step 5 – Set up and edit the Chart of Accounts (COA)
▪ View the Video:
o “How to Edit your Chart of Accounts in QuickBooks” -
https://www.youtube.com/watch?v=xp-rcPZtUc0
▪ Review: Chart of Accounts, Intuit Education PPT, Pages 51 –
56, 59 (subaccounts)
▪ See Appendix B.
Step 6 – Set up sales tax
▪ View the Video:
o “How to Set Up Sales Tax: Settings, Sales & More”
https://www.youtube.com/watch?v=CiIfTi0tSk0
▪ Review: Sales Tax Center, Intuit Education PPT, Pages 60 –
61.
▪ See Appendix C.
Step 7 – Set up product items and contributed inventory –

4) Professional behavior/Collaboration: Study and practice in a
manner that is consistent with the
character and high standards set by the AICPA and other
professional accounting organizations,
the accounting profession, and graduate accounting degree
programs. Demonstrate a work ethic
that includes timeliness, active participation and collaboration
in study groups, respect for diversity,
and a
commitment to continuously acquire new personal and
professional skills and knowledge.
http://www.intuiteducation.com/
https://www.youtube.com/watch?v=vNdZmf_nLZs
https://www.youtube.com/watch?v=xp-rcPZtUc0
https://www.youtube.com/watch?v=CiIfTi0tSk0
Page 3 of 23
▪ View the Video:
o “Add Product Information”
https://quickbooks.intuit.com/tutorials/lessons/add-
products-information/
▪ Review: Products and Services, Intuit Education PPT, Pages
62 – 69
▪ See Appendix D.
Step 8 – Create journal entries for all other (non-inventory)
owner contributions

▪ View the Video:
o “Journal Entries in QuickBooks Online”
https://www.youtube.com/watch?v=Ud0de5gGJL8
▪ See Appendix E
Step 9 - Add customers and vendors
▪ View the Video:
o “How to Add Customers and Vendors into QuickBooks”
https://www.youtube.com/watch?v=MJK63XmrJ1E
▪ Review: Customer Center and Vendor Center, Intuit Education
PPT, Pages 95 – 99
(customers), Pages 121 - 124 (vendors)
▪ See Appendix F
Step 10 – Add invoices*, purchase orders (POs) and bills.
▪ View the Video:
o “How to Create A Purchase Order”
https://www.youtube.com/watch?v=lGGUSmFPJok -
(IMPORTANT NOTE: Create the bill directly from the PO.
Notice in the video
where the presenter is showing the PO summary screen, to the
right of the PO
there is a button to “Create bill.” Click the Create bill button to
create the bill for
the vendor.
▪ View the Video:

o “How to Enter Bills, Track Expenses, & Record What You
Owe”
https://www.youtube.com/watch?v=PGbS7GpdNTo
▪ Review: Create Invoices and Create Bills, Intuit Education
PPT, Page 103 (create
invoices), Page 127 (creating bills) - NOTE: Do not spend time
creating fancy invoices.
Use the basic form unless you want to play around with this
feature.
▪ See Appendix G
Step 11 – Enter all transactions for the month of April
▪ View the Video:
o “Create Sales Receipts in QuickBooks”
https://quickbooks.intuit.com/tutorials/lessons/sales-receipts/
▪ Review: Create Sales Receipt, Intuit Education PPT, page 102
▪ View the Video:
o “Receive Payments in QuickBooks”
https://quickbooks.intuit.com/tutorials/lessons/receive-
customer-payments/
▪ Review: Receive Payments, Intuit Education PPT, pages 104,
106 -NOTE: make sure
you are receiving the payment to Kobe’s Bank account, not
undeposited funds
▪ View the Video:
o “How to Record & Print Checks”

https://www.youtube.com/watch?v=eNSPai2twcM
https://quickbooks.intuit.com/tutorials/lessons/add-products-
information/
https://quickbooks.intuit.com/tutorials/lessons/add-products-
information/
https://www.youtube.com/watch?v=Ud0de5gGJL8
https://www.youtube.com/watch?v=MJK63XmrJ1E
https://www.youtube.com/watch?v=lGGUSmFPJok
https://www.youtube.com/watch?v=PGbS7GpdNTo
https://quickbooks.intuit.com/tutorials/lessons/sales-receipts/
https://quickbooks.intuit.com/tutorials/lessons/receive-
customer-payments/
https://www.youtube.com/watch?v=eNSPai2twcM
Page 4 of 23
▪ Review: Create Check, Intuit Education PPT, page 126 (&
debit charges) –NOTE: Be
sure to change the check number to Debit or EFT or something
else. QBO will accept
duplicate words so pick one and stick with it for consistency.
However, make sure that
checks are numbered correctly.
▪ View the Video:
o “How to Record Bill Payments”
https://www.youtube.com/watch?v=zan6MC0zSYY
▪ Review: Create Check, Intuit Education PPT, page 128 –
NOTE: Make sure you
document the check number used to pay the bill.

▪ See Appendix H
Step 12 – Reconcile April Bank Statement –
▪ View the Video:
o “Reconcile your accounts”
https://quickbooks.intuit.com/tutorials/lessons/reconcile-
accounts/
▪ Review: Intuit Education PPT, pages 142 – 144.
▪ See Appendix I
▪ Perform a bank reconciliation in Quickbooks
Step 13 – Review and Revise Financial Statements
▪ View the videos:
o “Understanding Profit & Loss Statement: Income, Cost of
Goods”
https://www.youtube.com/watch?v=nSGeKUO4HHE
o “How to Customize Reports: Basics, Sorting & Date Ranges
https://www.youtube.com/watch?v=Hy5MQAPDa-U
▪ Intuit Education PPT, page 77 – 84.
▪ See Appendix J
Step 14 – Print Reports
▪ P&L and Balance Sheet for the current month. Make sure the
report basis is Accrual.
▪ Print the General Ledger for “all time”
▪ Review: Intuit Education PPT, pages 77 – 84

Step 15 – Create a Book to Bank Reconciliation in Excel
▪ Using MS Excel, create a bank reconciliation that explains
each uncleared item between
the bank and book cash account balances. Use formulas in all
cells with calculations and
provide written explanations for each line item.
https://www.youtube.com/watch?v=zan6MC0zSYY
https://quickbooks.intuit.com/tutorials/lessons/reconcile-
accounts/
https://www.youtube.com/watch?v=nSGeKUO4HHE
https://www.youtube.com/watch?v=Hy5MQAPDa-U
Page 5 of 23
IV. Deliverables
1. Submit 1 PDF file by combining the following pdf files
generated from QuickBooks:
a) Profit & Loss, accrual basis for report period “All dates”
b) Balance Sheet, accrual basis report period “All dates” and
c) General Ledger accrual basis for report period “All dates”
2. Submit 1 Excel file that contains the following:

• The April bank reconciliation with formulas embedded into all
cells that require
calculations.
V. Hints and Tips:
General Hints and Tips:
▪ Active participation in the study group is a requirement, but
more importantly, helping one
another has been shown to improve all students’ grades.
▪ Read the entire Project before beginning the project; make
notes as you read
▪ Read the Rubric before beginning the project
▪ In QBO:
1. Do NOT track Classes
2. Do NOT track Locations
▪ The beginning balance in the Equity account is $0 because the
business was just
opened.
▪ Submit the Project deliverables on or before the due date.
1. Review the Late Policy in advance of the due date; your
professor is required to
enforce the late policy.
▪ Ask your supervisor (professor) questions as needed.
Inventory Hints and Tips:

▪ When first setting up the inventory account, associate each
inventory item with the
correct Sales account.
▪ The Inventory account includes two types of inventory:
o Original artwork created by Kobe
o Prints of Kobe’s original artwork
▪ When inputting the print inventory items, record the costs
incurred to pay
the print shop to make the prints
Non-Inventory Hints and Tips:
▪ Kobe’s commissioned (custom) artwork does not pass through
the inventory account
because these paintings are from custom orders.
▪ Kobe’s Krafts also sells artwork created by other artists. The
items belong to the other
artists and therefore do not pass through the inventory account
of Kobe Krafts.
Chart of Accounts:
▪ Do not create account numbers for the accounts
VI. Rubric:
Page 6 of 23

You will find the rubric in LEO under Contents>Course
Resources>Projects & Rubrics
Competencies Assessed by Project:
Communication: Learners demonstrate capability to
communicate clearly both orally and in writing.
Measurement, analysis, and interpretation: Identify and apply
appropriate, reliable, and verifiable
measurements to analyze data for a given purpose and intended
use.
Reporting: Identify the appropriate content and communicate
clearly and objectively to the
intended audience the work performed and the results as
governed by professional standards,
required by law or dictated by the business environment.
Technology and Tools: Identify and utilize relevant technology
and tools to analyze data, efficiently
and effectively perform assigned tasks as well as support other
competencies.
Decision making/Critical thinking: Objectively identify,
critically assess issues, and use professional
judgment to develop appropriate decision models, identify and
analyze the costs and benefits of
alternative courses of action and recommend optimal solutions.

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Appendices
▪ Appendix A: QBO – Account and Settings
Appendix B: Chart of Account Changes
▪ Appendix C: Overview of Sales Tax
▪ Appendix D: Overview of Inventory
▪ Appendix E: Owner Contributions
▪ Appendix F: Customers and Vendors
▪ Appendix G: Invoices, POs, and Bills
▪ Appendix H: April Transactions

▪ Appendix I: Bank Statement
▪ Appendix J: Financial Statement Review
Page 8 of 23
Appendix A: QBO – Account and Settings
Remember - “QuickBooks is a very forgiving program. Most
mistakes can be fixed as you have
the ability to go back and make historical changes, however a
correct setup will prevent the need
in most cases.” (Intuit Education PPT).
The following are the important pieces of information you need
to set up Kobe’s Krafts in QBO.
Each of the Bolded items are Categories in the Account and
Settings page.
COMPANY:
• Company Name: Kobe’s Krafts_YOUR name
• Your name must be part of the Company name
o There are no exceptions

• Example: Kobe’s Krafts_Sharon Levin
• Email: Enter your UMGC email address that appears in our
classroom
• Telephone: Enter your phone number associated with your
UMGC profile
• EIN: - LEAVE BLANK. EIN not received yet
• Company Type: Sole proprietor
• Address: 500 Grand Blvd. Miramar Beach, FL 32550
• Website: Enter UMGC.edu
• Tax form: Sole Proprietor (Form 1040)
• Method of Accounting: Accrual
• Kobe’s Krafts will not be using track classes or track
locations.
SALES:
• Kobe’s Krafts sales terms are Net 30, unless otherwise stated
• Shipping is available for a fee
• Discounts are offered occasionally
• Kobe’s Krafts requires a 50% deposit on all commissioned
artwork / custom orders
• Track the quantity and price/rate for all sales

• Track inventory quantity on hand for the art prints.
EXPENSES:
• Kobe’s Krafts wants to use purchase orders, so make sure you
check the box.
• All other default settings are fine.
PAYMENTS:
• This setting is used to allow clients to pay an invoice through
their system. Although
Kobe’s Krafts is possibly be interested in this feature in the
future, he has no current interest.
ADVANCED:
• Kobe’s Krafts is a calendar year taxpayer, but he hasn’t
received an EIN yet.
o (The first month of the fiscal year is January).
• Use the tax form: Sole proprietorship Form 1040
• Do not use account numbers
• Do not track classes or track locations.
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Page 9 of 23

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Appendix B: Chart of Account Changes
Add: Name: Account Type Detail Type Subaccount of:
Kobe's Krafts Bank Bank Checking
Refundable
Deposits
Other Current
Assets Other Current Assets
Art Displays Fixed Assets Furniture & Fixtures
Consignments
Payable
Other Current
Liabilities Other Current Liabilities
Art Sales Income Sale of Product Income

Original Artwork
Sales Income Sale of Product Income Art Sales
Print Sales Income Sale of Product Income Art Sales
Commission Sales Income Sale of Product Income Art Sales
Consignment
Income Income Service/Fee Income
Discounts Given Income Discounts/Refunds Given
Group Art Classes Income Service/Fee Income
Print Expense Cost of Goods Sold
Supplies & Materials –
COGS
Art Supplies
Expense Expenses Supplies & Materials
Shipping Expense Expenses Shipping, Freight & Delivery
Gain on Sale of
PP&E Other Income Other Miscellaneous Income

Loss on Sale of
PP&E Other Income Other Miscellaneous Income
Edits:
Change from: Change to:
Owner's Pay &
Personal Expenses Owner Distributions Equity Owner's Equity
Opening Balance
Equity
Opening Balance
Equity Equity Opening Balance Equity
NOTE: Opening
Balance Equity =
$0
Rent & Lease Rent Expense Expense Rent or Lease of Building
Office Supplies &
Software Office Supplies Expense
Office/General
Administrative Expense
Delete:

Job Supplies
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Page 11 of 23
Appendix C: Overview of Sales Tax
NOTE: Sales Tax must be set up in the “TAXES” area in QBO.
Proceed with this section
carefully. QBO is very user friendly for the most part;
however, there are areas that are hard to
fix should you set it up incorrectly and Sales Tax is one of
those areas so do not rush here.
Read all the way through this appendix, watch the how to videos
and then proceed with caution.
Kobe’s new art studio is located in Miramar Beach, Florida,
32550. He is required to pay 7% in
sales tax to the State of Florida. Of that 7% state tax, the state
of Florida disburses 1% to
Walton County.
The State of Florida requires most taxpayers to file monthly
sales tax returns, Kobe’s Krafts falls
into this category. As of April 1st, Kobe’s Krafts must start
collecting taxes and the first return is
due no later than May 20th (QBO knows when it is due) for the
reporting period of April 1 – April
30.
Kobe’s Krafts needs to make sure he charges customers and

remits sales tax for everything he
sells except for the group art classes. Florida does not collect
taxes on the sale of services.
Address: 500 Grand Blvd. Miramar Beach, FL 32550
Go to the “TAXES” area and set up sales tax for the state of
Florida. If you entered the business
address when you were setting up the account, QBO should
suggest the correct tax agency(s).
If not, it should ask you for an address here. Make sure you
select Florida Department of
Revenue from the dropdown list. Again, make sure you find the
taxing agency in the dropdown
list to select. Do NOT manually add any taxing body. QBO
already has all the information it
needs to correctly tax products and it will automatically update
taxes should laws change but
only if it is set up correctly from the beginning.
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Page 12 of 23
Appendix D: Overview of Inventory
The setup of Inventory will be done in the
“INVOICING/SALES” area of QBO. Once in SALES,
go to the Products and Services tab.

Then click “New” in the upper, right corner. Next click
“Inventory” and fill in the name, category,
and:
• Fill in the name of the first inventory item.
• Select the category. The first time you will have to add a new
category.
o You will be adding these categories: Kobe’s Originals,
Prints, and Non-inventory
items
• The “initial quantity on hand” will be the owner contributed
inventory, see the table below.
• As of date will be 4/1/2020.
• Do not enter a quantity in the “Reorder Point” field for any
items.
• The Inventory asset account is “Inventory asset”
• Do not use product codes aka SKU numbers.
• For all items that have a fixed sales price associated with it,
enter the Sales price for each
item
• Also, make sure you associate the correct Income Account
with the correct product.
o i.e. All sales of original artwork should be recorded to Income
account: Art Sales:
Original Artwork Sales

• Enter the costs to have the prints made.
• Remember, all sales are taxable EXCEPT FOR Group Art
Classes.
o Be sure to select “Taxable Standard” under “Sales tax
category” for all sales other
than group art classes, which will be “Nontaxable.”
Kobe’s Krafts primarily sells 3 types of original artwork and
prints - Large, Medium, and Small.
Pricing and Cost of Original Artwork:
Pricing:
Standard pricing for Kobe’s original artwork:
Size of Artwork Sales Price Number of Pieces
Contributed
Total Value
Large $1,700 5 $8,500
Medium $600 12 $7,200
Small $100 32 $3,200
Sales of Kobe’s original artwork should set the product Income
account to: Art Sales: Original

Artwork Sales.
Cost:
Page 13 of 23
Kobe was instructed years ago by his tax accountant that his
original artwork inventory should
not have a COGS associated with it because it is impossible to
accurately determine the costs
associated with his original artwork, some of which he painted
decades ago. Instead he needs
to expense all of his art supplies purchases. However, the
prints in inventory are classified as
inventory until sold and then those costs will be classified as
COGS. So, although the original
artwork inventory will have zero costs associated with it, you
will enter the sales price of the
inventory Kobe transfers in to the business.
Cost and Pricing of Prints:
He transfers all his print inventory (reproductions of original
artwork) to the business April 1st, as
follows:
Size of Prints QTY Cost per Unit Sales Price per
Unit
24 x 36 Print 10 $80 $210

11 x 14 Print 50 $25 $75
5 x 7 Print 110 $4.50 $12
All of the prints in the table above should have the following
setting:
1. Income account to: Art Sales: Print Sales
2. Expense account to: Print Expense, which is a COGS account
In addition to original artwork and prints, Kobe has several non-
inventory items that you need to
add.
Description Sales Price
per Unit
(student)
Income Account
Service (non-taxable) Group Art Classes* $35 Group Art
Classes
Non-Inventory Sale Commission Work (i.e. custom orders) N/A
Art Sales: Original Artwork
Sales
Non-Inventory Sale Consignment Artwork** N/A Consignment
Income
Non-Inventory Sale Unusual Sales PP&E*** N/A Gain on sale
of PP&E

For all commission artwork, Kobe’s Krafts requires a 50%
deposit at time of order and the
balance when the buyer picks up the artwork.
* Remember, this is the only non-taxable item.
** Kobe also displays and sells consignment pieces. He earns a
25% commission on each piece
sold. The consignee sets the price, so Kobe keeps those
records on an Excel spreadsheet and
does not enter the prices in QBO until he sells the pieces. In
other words, the consignment
inventory is not an inventory item, but you need to set up a
product item to handle the
transaction. However, make note of all consignment sales
because in order to complete the
Page 14 of 23
sales transaction, you need to make a journal entry (JE) to move
75% of the sale from the P&L
to the balance sheet as Consignments Payable.
*** Sales of PP&E will also require a JE to remove the item
from the balance sheet and reduce
the gain (or increase the loss) on the sale. The transaction is
not complete until this JE is made.
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Appendix E: Owner Contributions / Investments
To enter all owner contributions, you may create one or
multiple JEs. Determine the correct
account to debit from the list below and credit: Owner’s
Investments. Remember all of the items
below were paid by Kobe from his personal bank account. Also
remember to put the description
of each item in the JEs.
Date Description Account Amount
3/1 *Rental Deposit (Refundable) Refundable deposits $2,500
3/1 *1st month rent - March
(prior to opening)
Rent expense 2,000
3/1 *Electricity Deposit (refundable) Refundable deposits 800
3/5 *Phone Company Deposit
(nonrefundable)
Utilities 200
3/10 *Gallery set up supplies –
paint for walls, cleaning supplies,

lumber for building shelves/racks
Office Supplies 450
3/15 *Miscellaneous art supplies
for classes
Art Supplies
expense
749.99
3/25 4 large Art displays
(fair market value at time of
contribution = $450 each)
Art Displays 1,800
3/31 Owner’s deposit to open
a business bank account
Kobe’s Krafts Bank 10,000
Total $18,499.99
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Page 16 of 23

Appendix F: Customers and Vendors
Enter all customers in the “SALES” area and all Vendors in the
“EXPENSES” area.
Customers:
Name Phone
Number
Email Address
Candy Thomas 898-474-1111 [email protected]
Kids Love Art 898-474-1111 [email protected] 1173 Front
Beach Rd
Miramar Beach, FL 32550
Shawn Baylor 898-747-5200 [email protected]
LeBron Barry 897-872-2152 [email protected]
Kareem Bird 899-421-1478 [email protected]
Customers Kobe uses this “Customer” account to record sales to
non-recurring
customers and Daily Sales Receipts
Vendors:
Name of
company/account
managers

Phone
Number
Email Address
Ace Real Estate –
Laurie is manager
850-393-5555 [email protected]
om
3630 Bay Avenue
Miramar Beach, FL 32550
Salem Prints
Sasha Levin
Dish Network
Ron Primo
850-424-7900 [email protected] 78-541 Wildcat Drive
Dade City, FL 33624
Kobe
USA Art Supply
Jenny
m
714 Rose Lane

Brandon, FL 33617
Consignment Vendors:
Name Phone
Number
Email Address
JoAnne Lopez
Original artwork
904-546-7300 [email protected] 415 Orange Avenue
Tampa, FL 33616
Michael Koltes 850-778-2211 [email protected] 857 Rose Lane
Marco Island, FL 34145
back
mailto:[email protected]
Page 17 of 23

Appendix G: Invoices, POs, and Bills
INVOICES – Purchases from Customer
Date Customer Terms Discount* Product
Purchased
QTY Amount
1-Apr Kids Love Art Net 30 10% Art Classes 10 $315
2-Apr LeBron Barry Due on
receipt
Commission Work 1 $4,500
+ tax
30-Apr Kids Love Art Net 30 10% Art Classes 45 $1,417.50
*Kids Love Art is the only customer that receives a
discount because they buy individual art classes in bulk and pay
within 15 day.
PURCHASE ORDERS – Orders to Vendor
Purchases: Description QTY Each Price Totals
Salem Prints* order 4/1/2020 24 x 36 prints 5 $80 $400
11 x 14 prints 10 $25 $250
5 x 7 prints 20 $4.50 $90

Shipping expense $20
Tax (non-taxable online purchase) $0
Total Order $760
* NOTE: Make sure you create the bill for the Purchase Order
from the Purchase Order.
It is very easy make sure the dates are correct, see table below.
BILLS – Payable to Vendors
Received Due To For Amount
1-Apr 1-Apr Ace Real Estate April Rent $2,000
1-Apr 16-Apr Dish Network
Utilities: Telephone and
internet bill
$285.64
4-Apr 19-Apr Salem Prints Print order 4/1 $760
24-Apr 9-May USA Art Supply Purchased large glass art
display $4,001.99
30-Apr 30-Apr Ace Real Estate May Rent $2,000
* Make sure you create the bill from the P.O. $9,047.63
back

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