Scenario: Background
Basswood Furniture is owned and operated by Ian Smith as a sole proprietorship. Ian rents a storefront/gallery at 124 River Lane in Hemlock, PA, 18951. The store is open Monday through Friday from 8 a.m. to 7 p.m. He has been in business for almost two years now. He specializes in creating custom furniture according to client specifications. The furniture is delivered and installed, if necessary, in the client’s home or business.
Ian has hired you to be a full-charge bookkeeper effective December 1. The previous bookkeeper left unexpectedly in November due to medical problems. Your wage will be $15.00/hour. Since the other bookkeeper left, Ian has been trying to get by with paying bills, employees, etc. However, he isn’t a trained bookkeeper. He needs someone who can get up to speed quickly doing the books manually (Ian doesn’t have accounting software), who understands bookkeeping intimately and is able to correct anything he has done in error, and who can maintain his books accurately in the future.
This is why he has hired you. Although you have no experience—this is your first job—you made a strong impression on Ian with your knowledge of bookkeeping. He was impressed with your graded project for Penn Foster, which you showed him during the interview process to obtain this position. Your immediate supervisor is Jeremy Gates, a CPA with the accounting firm Gates and Associates, Inc. Jeremy spends one or two days at the end of every quarter auditing the books. He is responsible for the accuracy of the books, year-end work, tax preparation, and financial advice. You’ll have access to Jeremy for any questions or problems you may have. This, coupled with your bookkeeping skills, make Ian confident that you’ll be able to perform well in the position of full-charge bookkeeper. Your duties will be to maintain the accounting records and produce financial statements at the end of each accounting period.
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