HOPE System Guide Control System 9/16/96 Page 129

 

Account Definitions

 

The definitions of the accounts already set up in HOPE are as follows:

 

Current Assets

 

11000 CASH -- All payments received from customers in cash, check or charge: less amounts paid out for expenses, inventory, etc.

 

13000 ACCOUNTS RECEIVABLE -- Any amounts due to your business. It is strongly suggested that all customers' accounts be paid in full at time of delivery.

 

15000 INVENTORY -- Value of the business inventory. Initial value is increased by purchases and decreased by delivered sales. Accessory inventory may or may not be included depending on the method of accounting chosen (see Page 148 for further information).

 

17000 SHORT-TERM INVESTMENTS -- C.D.'s or other liquid investment made with cash

which is being kept in the business to anticipate future needs.

 

18000 PREPAID EXPENSE & OTHER -- Amounts paid or deposits made on items which will become expenses in the future, e.g. prepaid rent; any other asset which will become cash within one year and is not in account 11000, 13000 or 15000.

 

Non-current Assets

 

22000 CAPITAL (OFFICE EQUIPMENT) -- Includes your HOPE equipment and other equipment in your office.

 

23000 CAPITAL (AUTO, TRUCK, WAREHOUSE) -- Equipment used for delivery and/or warehouse, any autos or trucks.

 

24000 CAPITAL IMPROVEMENTS (SHOWROOM) -- Leasehold improvements to the store/showroom.

 

25000 RESERVE FOR DEPRECIATION -- Reserve for the depreciation of all assets in accounts 22000, 23000, 24000. When equipment is removed from service, the associated depreciation must also be removed.

 

Current Liabilities

 

31000 ACCOUNTS PAYABLE -- Balances due to suppliers; small expenses can be expensed when paid and charged directly to cash.

 

32000 FED. W/H TAX PAYABLE -- If there is a significant time lag between the time you charge/collect Federal Withholding Tax and the time you pay it, you can use this account to accrue the liability.