Kentucky Agricultural Education Record Keeping Instructions & Examples

1. Kentucky Agricultural EducationRecord KeepingInstructions & Examples I can describe how to access my finances in AET. I can accurately record new loans and loan payments for my AET Experience (SAE). I can accurately record non-SAE financial transactions for my AET Experience (SAE).

2. As with Financial Beginning Inventory, students can get to the Finances link by clicking on the light green box from the AET homepage.

3. Remember, students can enter any financial entry, including beginning values, transactions, and loans from the Financial Home Page.

4. Remember, the Experience Manager can easily be accessed from this page, which lists all AET Experiences.

5. Also, remember that students can review/edit all financial entries from this screen as well.

6. All beginning values can be accessed/edited from this page.

7. After entering Beginning Values, another type of financial transaction that will be recorded are new Loans and Loan payments.

8. Recording New Loans

9. If a student takes out a new loan, that information is recorded under the “Loan Manager.”

10. Any liability that a student had on the first day of his/her agriculture class and that was recorded as a beginning value will already be reflected in the “Loan Manager.” To input a new loan, select, “New Loan.”

11. The student should enter the type of loan. The following options will be given: Short Term Loans, Capital Loan, Real Estate/Mortgage, Other Non-Current/Capital Liabilities. The date, vendor, loan amount, and business percentage should also be entered.

12. New Loan Example: On May 25th, 2014, Brandon received a Youth Loan from the Farm Service Agency for $5000. The total amount of the loan is due on December 31st 2020, and Brandon will make a total of 5 equal payments over the life of this loan.

13. The new loan will immediately appear under the “Loan Manager.” The amount of the loan will also immediately be calculated as available Cash/Checking on hand.

14. Recording Loan Payments

15. If a student makes a loan payment, that information is recorded under the “Loan Manager.”

16. All existing loans will be listed within the Loan Manager. To record any payments made on a loan throughout the year, select “Payments.”

17. Students will be directed to the Loan Payments page. The loan date, vendor, and original loan amount will be listed.

18. The Principle Paid amount will be listed as well. Principle • The amount borrowed or still owed on a loan. For AET, the number listed will be the amount that the student has paid towards the original loan amount.

19. The Interest Paid amount will be listed as well. Interest • The amount charged, expressed as a percentage of principal, by a lender to a borrower. Interest rates are typically noted on an annual basis, known as the annual percentage rate (APR).

20. To record a payment click, “New Payment.”

21. Students should record the payment date, total amount paid (including interest), interest paid, a short memo, and distribute interest to the AET Experiences that the loan was utilized for. Interest is billed to your entrepreneurship SAEs. These percentages indicate how the interest will be distributed.

22. Total interest paid will be calculated according to the payment schedule of the loan. This is a difficult number to calculate, so students should utilize loan paperwork to input this amount.

23. Loan Payment Example: On September 1st, 2013, Brandon made the first required payment to his Southern States Feed Bill. The total payment was $37.52. $0.37 of that payment was for interest. This loan was used equally for his Beef Cattle SAE and Market Beef Cattle SAE.

24. Loan Payment Example: Upon saving, the student will be directed to the Loan Payment page. AET will automatically update the Principle Paid amount and the Interest Paid amount based on the information entered from the payment. The payment information will automatically show beneath the loan information.

25. Loan Payment Example: On October 1st, 2013 Brandon made his 2nd payment for his Southern States charge account. The total payment was for $37.52. $0.28 of the payment was for interest. This loan was used equally for his Beef Cattle SAE and Market Beef Cattle SAE.

26. Loan Payment Example: Upon saving, the student will be directed to the Loan Payment page. AET will automatically update the Principle Paid amount and the Interest Paid amount based on the information entered from the payment. The payment information will automatically show beneath the loan information.

27. Loan Payment Example: Brandon made his final 2 payments on November 1st, 2013 and December 1st, 2013. Both monthly payments were for $37.52.

28. Once a loan has been paid in full, it will be shown within the “Loan Manager” as a fully paid loan. To access fully paid loans, students should click, “Fully Paid.”

29. Brandon’s Feed Account from Southern States is now paid in full. This is reflected by a $0 Principle Due amount.

30. When reviewing the Financial Transaction List, the loan payment and any interest paid towards the loan should be reflected as debits. The interest should be designated to the AET Experience that the student designated any interest distribution. Below, Brandon’s November and December loan payments and loan interest distributions are shown.

31. Brandon’s interest from his loan payment was divided in half between his Breeding and Market Cattle Operations. This is because within the loan Payment, Brandon stated that 50% of the interest should be distributed to each of these AET Experiences.

32. Recording Non-SAE Entries

33. Non-SAE Entries • A student uses AET Experience (SAE) money to make a Non-SAE (personal/educational) purchase • or Non-SAE income in which the money will be utilized to grow an AET Experience (SAE) Ex: A student works at a gas station and uses the income to supply feed for a market beef project, a student receives birthday money and plans to use the money to buy new rabbit feeders, a student buys a new outfit with money earned from an AET experience

34. If a student utilizes any AET Experience money to make a purchase not related to an SAE, that should be reflected as a Non-SAE Entry. Also, any Non-SAE money that is earned that a student plans to utilize for an AET Experience expense should be reflected as a Non-SAE Entry.

35. There are many different types of Non-SAE Entries. All of these entries are entered in the same manner. The student should select the Transaction Type that best reflects the income/expense.

36. Personal Expense SAE earnings used to purchase a service not intended for educational or SAE use.

37. Personal Expense Example: On May 19th 2014, Brandon used money from his AET Experiences to rent a tuxedo for his high school prom for $150 from Men’s Warehouse.

38. Personal Expense Example: Upon reviewing financial entries, the personal expense will automatically show as a debit on the Financial Transaction List.

39. Educational Expense: SAE earnings used to pay for educational related expenses

40. Educational Expense Example: On September 19th 2013, Brandon used money from his AET Experiences to pay the fee for his Murray State Agriculture Education dual credit course. The class cost $100.

41. Educational Expense Example: Upon reviewing financial entries, the educational expense will automatically show as a debit on the Financial Transaction List.

42. Non-SAE Ag Earnings (Cash): Ag-related earnings from a project/job outside of a student’s SAE/AET Experience and used for an SAE/AET Experience expense

43. Non-SAE Ag Earnings (Cash) Example: On July 3rd 2014, Brandon helped his neighbor, Tony Saylor, put up hay and was paid $75. None of Brandon’s AET Experiences are related to this work (hay work), so it is considered Non-SAE Agriculture Earnings. He does plan on using these earnings towards his Banana Pepper SAE.

44. Non-SAE Ag Earnings (Cash) Example: Upon reviewing financial entries, the non-SAE ag earnings will automatically show as a credit on the Financial Transaction List.

45. Non-Ag Earnings (Cash): Money earned from a project/job not related to agriculture and used for an SAE/AET Experience expense

46. Non-Ag Earnings (Cash) Example: On June 15th 2014, Brandon helped his Aunt Rachel move furniture and was paid $50. This work is considered Non-Ag related, but Brandon does plan on using these earnings towards his Lawn Care SAE.

47. Non-Ag Earnings (Cash) Example: Upon reviewing financial entries, the non-ag earnings will automatically show as a credit on the Financial Transaction List.

48. Unearned Income/Gift: Transfer of money that is not the result of labor or services provided, which will be utilized for an AET Experience

49. Unearned Income/Gift Example: On July 7th 2014, Brandon’s birthday, he received $100 in birthday money from his Aunt Morgan. Brandon does plan on using this gift towards his Beef Cattle SAE. (Other examples of Unearned Income: Non-SAE scholarship earnings, Non-SAE FFA contest prize money)

50. Unearned Income/Gift Example: Upon reviewing financial entries, the gift will automatically show as a credit on the Financial Transaction List.