invoice contains only those items that he actually
received. Since Bob does all the ordering and
unpacking, it is easy for him to keep track of the
incoming merchandise. The invoice then goes to
Mary, who prepares and signs all the checks. In fact,
Mary does all of the bookkeeping. There are no formal
financial statements.At the end of the year,Mary
takes the records to their tax preparer. She uses
columnar paper to maintain the equivalent of a cash
receipts journal and an expenditures journal. Mary
also prepares and keeps records for the payroll. At
the end of each month, she carefully totals her work
sheets and reconciles her records to the bank statement.
Bob and Mary sit down at the end of each
month to review the work sheets and their bank balances.
They must manage their cash flows and plan
for major purchases and improvements because
there are several slow rental seasons during the year.