Half the class was absent last Thursday, so we'll begin by revisiting what we talked about then.

Here is the accounting equation that we will all want to learn by heart:

Assets + Expenses = Liabilities + Equity + Income

Here is our story lemonade stand story so far:

We've opened a lemonade stand starting with $5 of our own money (owner's equity) and $10 burrowed from mom (notes payable, a liability). After using $12 for 50 lemons at 20¢ a piece and 5 pounds of sugar at 40¢ a pound (our startup inventory and enough to produce 60 glasses of lemonade at a cost of 20¢ each), we sell 50 glasses at 25¢ each, earning $25 in sales and using $10 in cost of goods sold, for a gross profit of $15. We still have to talk about expenses, like the $2 to rent the glasses for the lemonade, the $1 to pay the kid for painting our sign (advertising expense), and the $2 to pay our neighbor to rent the corner of his yard.

Our task today will be for each of us to get all these transactions into GnuCash on our personal laptops. The students who were here last Thursday have agreed to pair with folks who were not to help them get up to speed.

To earn an A for this assignment, you have to show me GnuCash running on your laptop with all the accounts setup properly and all transactions from the first chapter of The Accounting Game entered into the system.