For this part, assume you are entering information about transactions into their relational database. You will be entering financial information, but you will also need to consider the other types of information Big Marker would want to know about that event. You will also utilize what you have learned to identify internal controls specific to each transaction.

The transactions are as follows:

a. Billed 30 communities for monthly dues of $600 (each).

b. Borrowed $10,000 from First National Bank with a 6-month, 4% note payable.

c. Created a Chief Financial Officer position and established a support team for that function. The CFO’s annual salary will be $150,000; each support team member will earn $60,000 annually.

d. Purchase new computer servers from Dell, $40,000.

e. Reimbursed employee for business expenses: Supplies, $500; Food, $250; and Travel, $1,500.

For each of the transactions, you should answer the following questions:

1. Which business process (from chapters 12-14) is most closely associated with each transaction?

2. What is the most appropriate journal entry (if any) to record the transaction? For each of the accounts you use, identify the element (asset, liability, equity, revenue or expense).

3. What forms/documents would be used to process this transaction?

4. For each transaction suggest at least two additional pieces of information you would want to capture in a relational database.

5. For each transaction, suggest two internal controls you would implement. The controls should be specific to each transaction and you should justify/explain your response.

Answer rating: 100% (QA)

Answer Journal ANo Entry BBank 10000 To 4 Note payable 10000 CNo entry EEmployees Expenses 2250 To Cash 2250 DOffice equipment 40000 To Dell 40000 A Cash Collection and Billing department should have ... View the full answer