Develop a chart of accounts for Karens Designs, Inc.

Review the transactions and develop a chart of accounts for Karens Designs, Inc.

The chart of accounts should list the name of the account, the type of account (e.g, asset, liability, revenue, etc.) and where the account will appear (e.g., balance sheet, income statement, etc.)

You have been called in to help Karen Nicole who has recently started a graphic design business known as Karen's Designs, Inc. Karen began operations on May 1, 2023, and had limited activity in her first month. Karen has provided a summary of all of her activities during the month of May 2023. Karen is an astute business person, but has limited experience with accounting and would like your assistance with understanding how the activities of her business should be interpreted. Specific deliverables are listed below. May 1. Karen invested $10,000 into her business in exchange for 5000 shares of common stock. May 2. Karen purchased a six month business insurance policy for $1,200. May 5. Karen signed a six months lease on a shared office for $500 per month. Karen paid the entire amount of the lease in advance. May 7. Karen paid $2500 for office supplies which are expected to last for five months. May 10. Karen borrowed $5,000 from a family friend at an interest rate of 10%. Interest and principle are due in one year. May 12. Karen received $7,000 from Wagner Enterprises, a client, for design work to be completed in July. May 17. Karen completed $12,000 design work for Sir William Industries on account. Payment is due in 30 days. May 20. Karen completed $3,000 design work for DunnRite Scholastic Programs on account. Payment is due in 30 days. May 31. Karen completed an inventory of supplies and determined that $2,100 of supplies are on hand