Overview
In our last week before winter break, we will continue the process we began last week using GnuCash to record each transaction of the lemonade stand business in The Accounting Game.
This week we will complete Chapter 2, with the goal of picking up the pace further when we return in 2026 so we can complete the book by the end of the quarter.
Thursday, December 18th
Classwork
Study the vocabulary presented last class (why not quiz each other on it during class?) and be ready for a short quiz on it when we return in 2026.
Enjoy your winter break!
Tuesday, December 19th
Classwork
In your groups, read through Chapter 2 together, recording each transaction as it occurs, and adding new words introduced to your vocabulary list. One member from each group should email me the list of transactions you come up with. I'll provide you with the vocabulary list here:
- Sales
- Cost of Goods Sold
- Gross Profit
- Expenses
- Net Profit (a.k.a. The Bottom Line)
There are two equations (presented as one calculation on page 24 of our book) that connect these terms:
Sales - Cost of Goods Sold = Gross Profit
and
Gross Profit - Expenses = Net Profit
Now, back to our vocabulary list...
- General Ledger
- Ending Inventory
- Beginning Balance Sheet
- Ending Balance Sheet
- Interest
- Cash Flow Statement
The last of these introduces our third (and final) of the three financial statements: the cash flow statement. Take a minute to remind yourself of the names of the other two. We will want to learn all three by heart, so let's work toward that.