Chart of Accounts
The accounts you add and change in Chapter 9, in plain words.
Where the money sits
| Account | Type | What goes here |
|---|---|---|
| National Bank Checking (0042) | Bank | MaryBeth's opening investment lands here, and the bills are paid from it. |
| National Bank Savings (4236) | Bank | The studio's savings. |
| National Bank Visa (1818) | Credit Card | Card purchases, like design tools from Kilsheimer Design. |
What the studio owns
| Account | Type | What goes here |
|---|---|---|
| Inventory Asset | Other Current Asset | Tees, hats, mugs and totes in stock, at cost. |
| Security Deposits | Other Assets | The refundable deposit paid to Orr Realty with the first rent. |
Money in
| Account | Type | What goes here |
|---|---|---|
| Project Revenue | Income | Logo and web design work. |
| Professional Service Revenue | Income | Consulting. |
| Sales of Product Income | Income | Sales from the online store. |
Money out
| Account | Type | What goes here |
|---|---|---|
| Freight – COGS | Cost of Goods Sold | Shipping and delivery on merchandise. |
| Marketing | Expenses | Promoting the studio. A sub-account of Advertising & Marketing. |
| Small Tools and Equipment | Expenses | Design tools and small equipment. |
| Office Supplies | Expenses | Supplies for the office. Renamed from Supplies in Table 9-8. |
| Bank Charges | Expenses | What the bank and the card processor charge, in two sub-accounts: Bank Fees and Merchant Service Fees. |
The owner's share
| Account | Type | What goes here |
|---|---|---|
| Owner draws | Equity | What MaryBeth takes out for herself. A sole proprietor draws money instead of taking a salary. |