Accounting question involving resale for profit

[Robert Locke]

Hey there,

Standard disclaimer that IANAA, but here is how I would approach it
(interspersed with your dates below):

On Thu, 2005-08-04 at 09:32 -0400, Thomas John Vitolo wrote:
> Quick accounting question that I can't quite get my head around:
> 
> 1/1/04  Purchased a book of 10 sporting event tickets, face valued at $20 each.
>  $1000.

Is this one really $1000 or $200 - I'm going to assume $200 ($20x10)
Assets:Cash/Checking	-$200
Assets:Inventory	 $200

> 2/1/04  Agreed to sell 2 tickets (valued at $40) for $60.

Assets:Inventory	-$40
Expense:COGS		-$40
Assets:AccRecv		$60
Income:Sales		$60

> 3/1/04  Agreed to sell 2 tickets (valued at $40) for $70.

Assets:Inventory	-$40
Expense:COGS		-$40
Assets:AccRecv		$70
Income:Sales		$70

> 4/1/04  Received $60 payment.

Assets:AccRecv		-$60
Assets:Cash/Checking	$60

> 5/1/04  Received $70 payment.

Assets:AccRecv		-$70
Assets:Cash/Checking	$70

> 6/1/04  Personally used 2 tickets

Assets:Inventory	-$40
Equity:Owners Expense	-$40

> 7/1/04  Personally used 2 tickets

Assets:Inventory	-$40
Equity:Owners Expense	-$40

> 8/1/04  Personally used 2 tickets

Assets:Inventory	-$40
Equity:Owners Expense	-$40

> 
> So, there's a number of funny splits here.  At the end of the day, I've:
> spent $120 in expenses:entertainment
> spent $80 in some sort of business investment
> received $130 for that investment, resulting in $50 income?
> 
> I want to make sure I set up the accounts:receivable correctly, as well as the
> personal expenses, income, etc.
> 
> How to do this correctly from an accounting & gnucash point of view?
> 
> 
> Thanks!
>  - stomv
> 

Hope that helps a little...

--Rob