plan: D-42 a member paying for the company is cash borrowed and spent (revises D-35)

Co-Authored-By: Claude Opus 5.5 <noreply@anthropic.com>
Claude-Session: https://claude.ai/code/session_01T3gXMVt7XJPi6ens1or9Dj

plan/served.md

@@ -1318,13 +1318,14 @@ The owner decisions of 2026-10-16 (at the top of this document) replace the form
 | D-32 | No self-confinement (owner, 2026-10-20, asked how much of the planned Landlock/seccomp sandboxing of the server and the viewer, with the viewer's helper process, to build now that the server runs git for its backups: chose "None") | **No Landlock, no seccomp, no helper process for confinement.** The viewer stays read-only by design and by test (it never writes the books; its menu hands work to the server, through its admin socket as the command line does); agents still reach the books only through the MCP. Isolation is reported everywhere as `same_user (advisory)`. This replaces the self-confinement of P2's scope, 3.9's confined modes and their helper, and the archive-vs-Landlock decision row. |
 | D-33 | Mutation testing waits for P12 (owner, 2026-10-20: "Let's just put a pause on all the mutation testing. Let's add a P12 that runs the whole \"max test\" workflow again. By then maybe I'll have my (much beefier) desktop PC setup and we can run all that shit over there. For now I want to focus on the building.") | **Each phase from P2 slice 3 on is built, reviewed until clean and passes `just check` and `just prove`, without its mutation run.** P12 runs the whole max-testing pass (mutation, fuzzing, full property runs, proofs) over everything since P1, on the desktop. Each phase records in `docs/testing.md` what P12 must cover. |
 | D-34 | bookspec (owner, 2026-10-20: "Let's add a P13 which is a bookspec project. This is a FORMALLY written accounting spec … properly sourced with actual references, it's thorough, it might even have its OWN formal validation. It includes symbolic specs as well as concrete examples. It's useful for ANY accounting engine testing." Then: "bookspec is a SPEC first, and then it can also include formal methods/validation/proofs as well as a test harness that could be run against an accounting engine that conforms to the interface.") | **P13 writes bookspec**, its own public project: first the specification (every rule stated normatively, sourced, with a symbolic form and concrete examples), then its formal validation (Lean model, consistency, the laws as theorems, every example derived), then a conformance harness for any engine implementing its interface. wanderbooks is the first engine tested; `docs/spec/rules.md` and the Lean theorems seed it; P3's regression tests are its first examples. |
-| D-35 | The cash flow statement (P3, defect 1; owner, 2026-10-20, asked three questions at once with the design's recommendation first, chose each recommendation) | **Expenses a member pays personally are noncash** (disclosed as noncash financing per ASC 230-10-50-3; only the reimbursement from the bank is cash). **The statement lays out by kind:** operating cash one row per kind ASC 230-10-45-25 requires, investing and financing as kinds too ("Contributions from members — Tobin Harlow"), each transaction listed under its kind; every transaction stays in `books.cash_flow` and the exports. **Equipment paid for later is investing where the books can tell:** a bill payment carries its bill's split (the equipment part investing), a card purchase follows the card's classification, and a sale on an IOU is flagged with a fix. |
+| D-35 | The cash flow statement (P3, defect 1; owner, 2026-10-20, asked three questions at once with the design's recommendation first, chose each recommendation) | **Expenses a member pays personally are cash the company borrowed and spent** (revised by D-42: first decided as noncash on a wrong reading of ASC 230-10-50-3). **The statement lays out by kind:** operating cash one row per kind ASC 230-10-45-25 requires, investing and financing as kinds too ("Contributions from members — " and the member's name), each transaction listed under its kind; every transaction stays in `books.cash_flow` and the exports. **Equipment paid for later is investing where the books can tell:** a bill payment carries its bill's split (the equipment part investing), a card purchase follows the card's classification, and a sale on an IOU is flagged with a fix. |
 | D-36 | The QuickBooks file (IIF) in the CPA package (P3, defects 7 and 21; owner, 2026-10-20, after research: only QuickBooks Desktop reads IIF, QuickBooks Online imports CSV and Excel instead, and Desktop works in Windows code pages, its default IIF import turning anything past ASCII into "?") | **Kept, and written as plain ASCII:** a character it can't hold is transliterated ("René" → "Rene") and every changed name is listed in the export's warnings and the README; every other file in the package stays full Unicode. **CR LF line endings**, as Intuit's sample file. **The 1099 worksheet stops at the package's as-of date** like every other file in it. **Closing entries are left out of the IIF:** QuickBooks keeps no closing entries (it works out retained earnings itself; its "closing date" only locks a period), so imported closings would zero each closed period's profit; the package's K-1 worksheet and members' equity statement show the split by member. Whether the IIF holds every entry since the company began or only the fiscal year goes to the CPA before the 2027 package, with whether she uses QuickBooks Desktop at all. |
 | D-37 | Schedules (P3, defect 9; owner, 2026-10-20) | **New schedules spread by day** (D-11 confirmed: a 12-month policy from March 15 posts 13 entries, a small first and last month; existing schedules keep equal months). **An equal-months schedule must start on the 1st of a month**, for prepaid expenses and deferred revenue alike (asked "what would a CPA/CFO say?": revenue is never recognized before it is earned, ASC 606-10-25-23, so equal-month revenue must start on the 1st; prepaid expenses could take a full first month as an immaterial convention, but one rule for both is simpler and never early). |
 | D-38 | Odd cents everywhere alike (P3, defect 17; owner, 2026-10-20) | **The members' equity statement, the K-1 worksheet and the viewer split not-yet-closed earnings the same running way as the closes** (cumulative, largest remainder), so a member's capital on a given day never moves by a cent when its month is later closed. |
 | D-39 | Pushing the format upgrade (owner, 2026-10-20: "at first open, but not limited to 'once', I think we should push users harder into the format upgrade") | **After an update that needs a newer books format, the app asks for the go-ahead (after a verified backup) at every open until it is given**, the viewer shows a standing notice, and `books.start` puts the upgrade first among its next steps. Declining never stops the books opening on the old format; nothing is upgraded without the owner's yes. |
 | D-40 | 1099s (P3, defects 23, 12 and 18; owner, 2026-10-20) | **A bank payment with no method recorded counts toward 1099s** (presumed check, ACH or transfer; debit-card payments are tagged as card). **Anthropic, PBC is recorded "not reportable: a corporation (Delaware public benefit corporation, from the public record)"**; Namecheap, Apple and OpenRouter "a corporation by name" (Treas. Reg. §1.6041-3(p)(1)), USPS "the United States" (§1.6041-3(p)(3)); Google LLC stays undecided until a W-9 shows what it is. **Needs attention asks only about vendors paid in a way that could need a 1099.** **A vendor's 1099 status is dated** (owner: "I think legally this has to be 2 dated statuses, right? If someone incorporates on Dec 30 …"): each status carries the date it takes effect (the W-9's date, or a tax election's effective date), and the worksheet applies the status in force on each payment's date. A payee that incorporates is a new legal person (a new vendor record with its own W-9); an LLC electing corporate taxation keeps its EIN and changes status on the election's date: dated statuses cover both. A status changed for a closed year warns. |
 | D-41 | The contributed devices' tax basis (P3, defect 13; owner, 2026-10-20) | **Depreciable basis is the lower of fair market value and the member's adjusted basis at conversion** (Treas. Reg. §1.168(i)-4(b); Pub. 946, property changed from personal use): $5,100 for the four, the CPA to confirm at year end. **§704(c) method: traditional**, recorded now and confirmed with the CPA before the first Form 1065 (for members filing jointly every method gives the household the same tax). **The four devices' values on 2026-10-15 are the books' amounts** ($1,650; $1,025 plus AppleCare+ $25; $1,675; $750), citing entries 14, 19, 16 and 17. **New P3 item: the K-1 worksheet reports tax-basis capital** (Form 1065 instructions, Item L, since 2020), the contributed property at its §723 carryover basis, beside the book figures. |
+| D-42 | A member paying for the company, on the cash flow statement (P3, defect 1; owner, 2026-10-20, revising D-35's first point after the review found ASC 230 silent on a payment a third party makes on the entity's behalf) | **Constructive receipt and disbursement:** when a member (or a lender) pays a company expense or purchase directly, the statement shows a financing inflow (borrowed from the member) and the operating or investing outflow, on that date; paying the member back is a financing outflow. Source: ASC 230 does not address it; practice fills the gap by substance (Deloitte DART Roadmap 7.2 with AICPA TQA 1300.16 and the SEC staff's view; PwC, BDO and EY guides alike), the way a CPA would present it; KPMG accepts noncash only for equipment a lender pays for. Property a member contributes that it already owned stays noncash (ASC 230-10-50-4: no cash moved). Total cash is the same either way; the first company's figures are in its private P3 change log. |
 
 ### 10.2 Deferred