Okay, I actually forgot to give you experience for the three kobolds killed at your first visit to their cave.
My updated record shows:
XP 3942
MONEY 31.4 (I can't remember what it was spent on...)
Bedroll 1
Blanket 1
Rations 14
Rope 50' 1
Arrows (20) 2
Backpack 1
Flint & Steel 1
Longsword 1
Longbow 1
Chain Shirt 1
Light Steel Shield 1
Torch 2
Chronicler's Kit 1
Acid 2
Antitoxin 1
Potion Cure Light Wounds 1
Oil Obscuring Mist 1
Potion Endure Elements 1
Potion Invisibility 1
MW Longbow 1
And the party inventory is mostly sold and has:
MONEY 1079.6
Trade CREDIT 1225
Spyglass 1
Sextant 1
Mapmaker's Kit 1
Vial of brown liquid (P. 49) 6
Tent 2
Bear trap 1
Stone with lightning bolt carving 1
Stag Lord amulet 2
Swordlords Charter (P. 1) 1
Scrap of parchment w claw tree (P. 3) 1
Now I'm not bothering with keeping track of rations and arrows any more. At third level I assume your character can remember those for himself.
Here is a complete list of all the stuff I have acquired just so you have it for your records. I forgot about the silver. Like I said some of this we sold or gave to Oleg.
9 sets of leather armor
2 broken leather armor
4 dagger
1 composite longbow (+2 strength)
10 longbows
158 arrows
26 days of rations
10 short swords
1 Alchemist's Fire
97 gp
107 silver
A vial of light brown liquid
Studded leather armor
2 masterwork hand axes
5 tents
And an inactive Bear Trap.
A canvas covers more items under those:
A pair of silver earrings,
A small box with a turning handle and access panel that rings with a fine mechanism when moved,
3 crates measuring around 3 by 3 by 5 feet,
And a polished wooden case which clinks and sloshes when handled.
3 crates to find stacks of pelts, furs and hides.
The case contains 8 corked bottles filled with a dark green liquid.
Opening one, it smells of alcohol and herbs.
2 torches, 1cp, 1lb each
Oh, okay, I was mostly right. I forgot 2 sets of leather armour, the composite longbow, 3 longbows and the Alchemist's Fire. I sold all for you except the fire, you made about 300 extra gold on top of the previous sale. If you want to sell any of the items below, mention it here or in the game. The earring and the music box are sold for Oleg's price which was half the value of the items.
Don't forget the potions you bought from the old hermit called Bokken.
So my updated list reads:
MONEY 31.4
Bedroll 1
Blanket 1
Rope 50' 1
Backpack 1
Flint & Steel 1
Longsword 1
Longbow 1
Chain Shirt 1
Light Steel Shield 1
Torch 2
Chronicler's Kit 1
Acid 2
Antitoxin 1
Potion Cure Light Wounds 1
Oil Obscuring Mist 1
Potion Endure Elements 1
Potion Invisibility 1
MW Longbow 1
And the party inventory is:
MONEY 1352.1
Trade CREDIT 1225
Spyglass 1
Sextant 1
Mapmaker's Kit 1
Alchemist's fire 1
Vial of brown liquid (P. 49) 1
Tent 2
Bear trap 1
Stone with lightning bolt carving 1
Stag Lord amulet 2
Quest Items:
Swordlords Charter (P. 1) 1
Scrap of parchment w claw tree (P. 3) 1
I'm happy about level 2 but I don't know how to proceed except to maybe put level 2 on my character sheet? Do the experience points reset to zero?
I know the rules aren't well written on how to create a character and level up. You keep the experience points you have.
You check the Character Advancement chapter and follow the benefits there first. Level 2 has no additional benefits, but 3rd and 4th will give you a feat and an ability score increase, respectively.
Now normally Race doesn't increase with level, but Class does.
You choose the class you want to increase by a level. You can pick fighter and increase to Fighter level 2 and refer to the table in the class to add all the level 2 Class Features. Or pick a new class if you wish for its first level features, that is called multiclass.
All the pluses in the table do not add to your current scores, but represent the total added from the fighter class. So if you image your character with no class, it is easy to tack on, let's say, 6 levels of fighter just by adding one set of pluses.
Also, if you find a fighter Archetype that you would like, you should take it now. There are lots to help make your fighter unique, like Armor Expert, Two-handed Fighter or Roughrider and many more. All an archetype does is swap out a normal fighter's abilities with its own.
I will try to look it up when I get a chance but it sounds like I don't have much to do at second level.