Jim is doing preliminary planning to organize transaction flows at CondoCleaners.com. His secure website will use a credit card service to process customer payments, which will be deposited directly into the business bank account. He will pay for expenses using his own credit card or personal cheque, then submit expenses to the company monthly. Once he decides to hire employees, he will initially do the payroll calculations himself and issue cheques manually.
REQUIRED
a. List the financial statement cycles that will be present at CondoCleaners.com. For each financial statement cycle, list three general ledger accounts that will likely be present at the company.
b. Using Figure 5-4 as a guide, draw a flow diagram showing how sales will be processed at CondoCleaners.com.

c. Describe three specific transaction-related audit objectives that you would use to audit the sales revenue at Con- doCleaners.com.

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Figure 5-4 Transaction Flow into Journals and Financial Statements Transactions Journals Ledgers, Trial Balance, and Financial Statements Sales journal Cash receipts General ledger and subsidiary records receipts Acquisition of goods and Acquisitions journal General ledger trial balance disbursements disbursements journal Financial statements Payroll services and disbursements Payroll Allocation and adjustments