Chart of Accounts
The accounts that tell the studio's story, in plain words. You set up the chart in Chapter 2, and it grows with the studio.
Where the money sits
| Account | Type | What goes here |
|---|---|---|
| Business Checking (1025) | Bank | The main account. Session fees and shop sales are deposited here, and the bills are paid from it. |
| Money Market (7809) | Bank | The studio's savings. |
| Business Visa (5678) | Credit Card | The business card, for purchases like the printer from Peterson Office Supply. |
| Payments to deposit | Other Current Asset | Payments you have received but haven't taken to the bank yet. |
What the studio owns and owes
| Account | Type | What goes here |
|---|---|---|
| Inventory Asset | Other Current Asset | Cameras, lenses, cases and frames on the shelf, at what they cost. |
| Cargo Van | Fixed Asset | The used van Doug buys in Chapter 10, depreciated at year end. |
| Sales tax to pay | Other Current Liability | Tax collected on products, owed to California. |
| Customer prepayments | Other Current Liability | Money a client pays up front, before the work is done. |
Money in
| Account | Type | What goes here |
|---|---|---|
| Photography Income | Income | Sessions, retouching and the videographer. Not taxable. |
| Sales of Product Income | Income | Everything sold over the counter: cameras, frames, prints and paper. Taxable. |
Money out
| Account | Type | What goes here |
|---|---|---|
| Supplies & materials - COGS | Cost of Goods Sold | What the studio paid for the gear it sold. |
| Cost of labor - COGS | Cost of Goods Sold | Subcontracted work, like the videographer from Gandhi Video. |
| Building & land rent | Expenses | The rent check to Faust Properties, due on the 1st. |
| Officers' salaries | Expenses | Doug's pay. As an owner of an S corporation, he is paid through payroll. |
| Salaries & wages | Expenses | Kaydee's and Mario's pay. |