swaitsandClaude Opus 5.5
10d9d7d534
Direct method with the operating reconciliation and noncash schedules; it foots by construction (Lean and Kani). Every non-cash account belongs to one section; reversals net; a member or lender paying for the company is cash borrowed and spent (D-42, constructive receipt and disbursement); property a member contributes stays noncash. The bookspec seed: one loader checks every example. Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com> Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj
444 lines
13 KiB
TOML
444 lines
13 KiB
TOML
id = "cash-flow.two-member-llc-first-year"
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title = "A two-member LLC's first weeks: contributions, member-paid expenses, property contributed, corrections"
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rule = "The statement of cash flows MUST report cash receipts and payments, by section, with each reversal netted against its original in the period; expenses members paid personally on credit to them MUST be shown as cash borrowed from the members and spent, on each payment's date; property the members contributed MUST be disclosed as a noncash activity; the sections MUST sum to the change in cash."
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# CHOICE: the member-paid expenses. ASC 230 doesn't address a payment made
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# on the entity's behalf; the firm guides present it by substance as a
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# constructive receipt and disbursement (a financing inflow and an
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# operating outflow), and the owner chose that (D-42, revising D-35's
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# noncash presentation). The rest is the Codification's.
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status = "CHOICE"
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sources = [
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"ASC 230-10-10-1",
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"ASC 230-10-45-14(a)",
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"ASC 230-10-45-14(b)",
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"ASC 230-10-45-15(b)",
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"ASC 230-10-45-17(b)",
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"ASC 230-10-45-24",
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"ASC 230-10-45-28",
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"ASC 230-10-45-30",
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"ASC 230-10-50-3",
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"ASC 230-10-50-4",
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"PwC Viewpoint, Financial statement presentation 6.9.3.1 (cash a third party receives or pays on the entity's behalf is included as though through the entity's accounts)",
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"Deloitte Roadmap, Statement of cash flows 7.2 (constructive receipt and disbursement)",
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"BDO Blueprint, Statement of cash flows under ASC 230 (December 2025) 3.4 (a parent paying a subsidiary's expenses)",
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"wanderbooks D-42 (owner, 2026-10-20: a member or lender paying for the company is cash borrowed and spent)",
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]
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tags = ["accrual", "book", "us", "cash-flow", "partnership", "constructive", "regression:p3-defect-1"]
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# A two-member LLC's first weeks, in the shape of the books P3 defect 1
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# was found in: the same 23 entries in the same order, on the same
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# accounts and roles (two contributions in cash, expenses the members paid
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# personally through Due to Members and two reimbursements, a domain
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# expensed then corrected to a prepaid, two card charges, four devices the
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# members owned contributed, two of them first entered wrongly and
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# reversed), with every amount and date this example's own. Before the fix
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# the statement didn't foot: the reversals' credits to equipment (#13,
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# #18) belonged to no section, and the contributed devices read as
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# purchases.
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[setup]
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currency = "USD"
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fiscal_year_start = "01-01"
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basis = "accrual"
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rounding = "half-even"
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cash_accounts = ["1000"]
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financing_accounts = ["2100"]
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[[setup.accounts]]
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code = "1000"
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name = "Checking"
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type = "asset"
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[[setup.accounts]]
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code = "1300"
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name = "Prepaid Expenses"
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type = "asset"
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[[setup.accounts]]
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code = "1500"
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name = "Equipment"
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type = "asset"
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[[setup.accounts]]
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code = "1510"
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name = "Accumulated Depreciation"
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type = "asset"
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[[setup.accounts]]
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code = "2050"
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name = "Business Card"
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type = "liability"
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[[setup.accounts]]
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code = "2100"
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name = "Due to Members"
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type = "liability"
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[[setup.accounts]]
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code = "3000"
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name = "Capital — Member A"
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type = "equity"
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[[setup.accounts]]
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code = "3001"
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name = "Capital — Member B"
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type = "equity"
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[[setup.accounts]]
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code = "6000"
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name = "Organizational Costs"
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type = "expense"
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[[setup.accounts]]
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code = "6050"
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name = "Domain & Hosting"
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type = "expense"
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[[setup.accounts]]
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code = "6200"
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name = "Developer Fees"
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type = "expense"
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[[setup.accounts]]
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code = "6300"
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name = "Software & Subscriptions"
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type = "expense"
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[[setup.accounts]]
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code = "6400"
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name = "Memberships & Licenses"
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type = "expense"
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[[setup.accounts]]
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code = "6500"
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name = "Depreciation Expense"
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type = "expense"
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[[setup.fixed_assets]]
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cost_account = "1500"
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accumulated_account = "1510"
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expense_account = "6500"
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[[setup.members]]
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name = "Member A"
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capital_account = "3000"
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[[setup.members]]
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name = "Member B"
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capital_account = "3001"
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# Entry 1.
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[[events]]
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date = "2026-03-02"
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description = "Formation filing fee, paid by the members"
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lines = [
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{ account = "6000", side = "debit", amount = "85.00" },
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{ account = "2100", side = "credit", amount = "85.00" },
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]
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# Entry 2.
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[[events]]
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date = "2026-03-03"
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description = "Domain, 1 year, paid by the members"
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lines = [
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{ account = "6050", side = "debit", amount = "12.97" },
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{ account = "2100", side = "credit", amount = "12.97" },
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]
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# Entry 3.
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[[events]]
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date = "2026-03-05"
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description = "Developer registration, paid by the members"
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lines = [
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{ account = "6200", side = "debit", amount = "99.00" },
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{ account = "2100", side = "credit", amount = "99.00" },
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]
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# Entry 4.
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[[events]]
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date = "2026-03-09"
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description = "Contribution — Member A"
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lines = [
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{ account = "1000", side = "debit", amount = "1200.00" },
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{ account = "3000", side = "credit", amount = "1200.00" },
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]
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# Entry 5.
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[[events]]
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date = "2026-03-10"
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description = "Contribution — Member B"
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lines = [
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{ account = "1000", side = "debit", amount = "800.00" },
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{ account = "3001", side = "credit", amount = "800.00" },
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]
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# Entry 6.
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[[events]]
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date = "2026-03-11"
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description = "Subscription top-up, paid by the members"
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lines = [
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{ account = "6300", side = "debit", amount = "7.49" },
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{ account = "2100", side = "credit", amount = "7.49" },
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]
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# Entry 7.
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[[events]]
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date = "2026-03-16"
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description = "Developer membership, paid by the members"
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lines = [
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{ account = "6400", side = "debit", amount = "129.00" },
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{ account = "2100", side = "credit", amount = "129.00" },
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]
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# Entry 8.
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[[events]]
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date = "2026-03-23"
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description = "Reimburse members"
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lines = [
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{ account = "2100", side = "debit", amount = "333.46" },
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{ account = "1000", side = "credit", amount = "333.46" },
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]
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# Entry 9.
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[[events]]
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date = "2026-03-20"
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description = "Domain, 2 years, paid by the members"
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lines = [
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{ account = "6050", side = "debit", amount = "46.38" },
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{ account = "2100", side = "credit", amount = "46.38" },
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]
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# Entry 10.
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[[events]]
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date = "2026-03-25"
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description = "API credits on the card"
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lines = [
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{ account = "6300", side = "debit", amount = "14.20" },
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{ account = "2050", side = "credit", amount = "14.20" },
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]
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# Entry 11.
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[[events]]
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date = "2026-03-26"
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description = "Reimburse members"
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lines = [
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{ account = "2100", side = "debit", amount = "46.38" },
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{ account = "1000", side = "credit", amount = "46.38" },
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]
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# Entry 12.
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[[events]]
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date = "2026-03-27"
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description = "Laptop contributed by Member A"
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lines = [
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{ account = "1500", side = "debit", amount = "1480.00" },
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{ account = "3000", side = "credit", amount = "1480.00" },
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]
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# Entry 13.
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[[events]]
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date = "2026-03-27"
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description = "Reverse entry 12: contributed jointly"
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reverses = 12
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# Entry 14.
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[[events]]
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date = "2026-03-27"
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description = "Laptop contributed jointly"
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lines = [
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{ account = "1500", side = "debit", amount = "1480.00" },
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{ account = "3000", side = "credit", amount = "740.00" },
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{ account = "3001", side = "credit", amount = "740.00" },
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]
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# Entry 15.
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[[events]]
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date = "2026-03-27"
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description = "Laptop contributed jointly"
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lines = [
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{ account = "1500", side = "debit", amount = "1190.00" },
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{ account = "3000", side = "credit", amount = "595.00" },
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{ account = "3001", side = "credit", amount = "595.00" },
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]
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# Entry 16.
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[[events]]
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date = "2026-03-27"
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description = "Desktop contributed jointly"
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lines = [
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{ account = "1500", side = "debit", amount = "2210.00" },
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{ account = "3000", side = "credit", amount = "1105.00" },
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{ account = "3001", side = "credit", amount = "1105.00" },
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]
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# Entry 17.
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[[events]]
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date = "2026-03-27"
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description = "Tablet contributed jointly"
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lines = [
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{ account = "1500", side = "debit", amount = "630.00" },
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{ account = "3000", side = "credit", amount = "315.00" },
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{ account = "3001", side = "credit", amount = "315.00" },
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]
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# Entry 18.
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[[events]]
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date = "2026-03-27"
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description = "Reverse entry 15: the service plan is separate"
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reverses = 15
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# Entry 19.
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[[events]]
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date = "2026-03-27"
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description = "Laptop and its service plan contributed jointly"
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lines = [
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{ account = "1500", side = "debit", amount = "1151.00" },
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{ account = "1300", side = "debit", amount = "39.00" },
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{ account = "3000", side = "credit", amount = "595.00" },
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{ account = "3001", side = "credit", amount = "595.00" },
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]
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# Entry 20.
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[[events]]
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date = "2026-03-20"
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description = "Domain, 2 years, paid by the members, prepaid"
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lines = [
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{ account = "1300", side = "debit", amount = "46.38" },
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{ account = "2100", side = "credit", amount = "46.38" },
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]
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# Entry 21.
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[[events]]
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date = "2026-03-12"
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description = "Subscription, paid by the members"
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lines = [
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{ account = "6300", side = "debit", amount = "216.40" },
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{ account = "2100", side = "credit", amount = "216.40" },
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]
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# Entry 22.
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[[events]]
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date = "2026-03-20"
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description = "Reverse entry 9: prepaid, not expensed"
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reverses = 9
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# Entry 23.
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[[events]]
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date = "2026-03-30"
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description = "API credits on the card"
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lines = [
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{ account = "6300", side = "debit", amount = "42.75" },
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{ account = "2050", side = "credit", amount = "42.75" },
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]
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# By hand, the year to 2026-03-31 (rules.md B-14; D-42 for what the
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# members paid). Cash is 1000; 2100 (Due to Members) is financing.
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# - Operating: the members paid #1 85.00, #2 12.97, #3 99.00, #6 7.49,
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# #21 216.40, #7 129.00 and #20 46.38 (the prepaid domain) for the
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# company through 2100, each borrowed (financing, 45-14(b)) and spent
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# (operating, 45-17(b)) on its date: 85.00 + 12.97 + 99.00 + 7.49 +
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# 216.40 + 129.00 + 46.38 = 596.24, so operating -596.24, all cash paid
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# to suppliers. #9 and its reversal #22 net out (rule 6). The card's #10
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# and #23 moved no cash and 2050 is not financing: no line.
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# - Investing 0.00: every device was property the members owned (50-4),
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# disclosed below; #12/#13 and #15/#18 net out.
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# - Financing: #4 +1,200.00 and #5 +800.00 (contributions, 45-14(a));
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# +596.24 borrowed from the members (the seven above); the
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# reimbursements #8 -333.46 (#1, #2, #3, #6 and #7: 85.00 + 12.97 +
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# 99.00 + 7.49 + 129.00) and #11 -46.38 (#20), 45-15(b): 1,200.00 +
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# 800.00 + 596.24 - 333.46 - 46.38 = +2,216.40.
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# - Sum: -596.24 + 0.00 + 2,216.40 = +1,620.16, the change in cash (in
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# 1,200.00 + 800.00, out 333.46 + 46.38; 0.00 to 1,620.16); difference
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# 0.00.
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# - Reconciliation (45-28 to 45-30): net income is minus the expenses,
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# 85.00 + 12.97 + 99.00 + 7.49 + 129.00 + 46.38 - 46.38 + 14.20 + 216.40
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# + 42.75 = 606.81, so -606.81; other noncash +39.00 (#19's service
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# plan, contributed with the laptop); increase in 1300, 39.00 + 46.38,
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# so -85.38; increase in 2050, 14.20 + 42.75, so +56.95. Total -606.81 +
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# 39.00 - 85.38 + 56.95 = -596.24, the operating section.
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# - Disclosed (50-3, 50-4), the property contributed: #14 1,480.00, #16
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# 2,210.00, #17 630.00, #19 1,190.00 (1,151.00 equipment and 39.00 a
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# prepaid service plan), 5,510.00 in all; #12/#13 and #15/#18 drop out.
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[[expect]]
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query = "cash_flow"
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from = "2026-01-01"
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to = "2026-03-31"
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[expect.values]
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operating = "-596.24"
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investing = "0.00"
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financing = "2216.40"
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net_change = "1620.16"
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cash_beginning = "0.00"
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cash_ending = "1620.16"
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difference = "0.00"
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net_income = "-606.81"
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"operating.1" = "-85.00"
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"operating.2" = "-12.97"
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"operating.3" = "-99.00"
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"operating.6" = "-7.49"
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"operating.7" = "-129.00"
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"operating.20" = "-46.38"
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"operating.21" = "-216.40"
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"operating.count" = "7"
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"investing.count" = "0"
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"financing.1" = "85.00"
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"financing.1.on_behalf" = "85.00"
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"financing.2" = "12.97"
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"financing.3" = "99.00"
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"financing.4" = "1200.00"
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"financing.4.on_behalf" = "0.00"
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"financing.5" = "800.00"
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"financing.6" = "7.49"
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"financing.7" = "129.00"
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"financing.8" = "-333.46"
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"financing.11" = "-46.38"
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"financing.20" = "46.38"
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"financing.20.on_behalf" = "46.38"
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"financing.21" = "216.40"
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"financing.count" = "11"
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"reconciliation.other_noncash" = "39.00"
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"reconciliation.balance_change.1300" = "-85.38"
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"reconciliation.balance_change.2050" = "56.95"
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"noncash.14" = "1480.00"
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"noncash.16" = "2210.00"
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"noncash.17" = "630.00"
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"noncash.19" = "1190.00"
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"noncash.count" = "4"
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# The same books to 2026-03-18: #1 to #7 and #21 are dated by then (#9,
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# #20 and #22 on 03-20, the rest later). The members paid #1, #2, #3, #6,
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# #7 and #21 for the company, 85.00 + 12.97 + 99.00 + 7.49 + 129.00 +
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# 216.40 = 549.86: operating -549.86; financing #4 +1,200.00, #5 +800.00
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# and the 549.86 borrowed, +2,549.86; the change in cash 2,000.00
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# (-549.86 + 2,549.86); net income -549.86 with no reconciling item (no
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# operating balance has moved yet); nothing disclosed.
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[[expect]]
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query = "cash_flow"
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from = "2026-01-01"
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to = "2026-03-18"
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[expect.values]
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operating = "-549.86"
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investing = "0.00"
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financing = "2549.86"
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net_change = "2000.00"
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difference = "0.00"
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net_income = "-549.86"
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"operating.1" = "-85.00"
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"operating.2" = "-12.97"
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"operating.3" = "-99.00"
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"operating.6" = "-7.49"
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"operating.7" = "-129.00"
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"operating.21" = "-216.40"
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"operating.count" = "6"
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"financing.1" = "85.00"
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"financing.2" = "12.97"
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"financing.3" = "99.00"
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"financing.4" = "1200.00"
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"financing.5" = "800.00"
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"financing.6" = "7.49"
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"financing.7" = "129.00"
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"financing.21" = "216.40"
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"financing.count" = "8"
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"noncash.count" = "0"
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