Part I: Create an Entity-Relationship Diagram (ERD) based on the REA Model

During an internship with James Merchant, CPA, you were asked to create a database for the firm to help with billing and cash receipts. Merchant employs one staff accountant, a bookkeeper and one intern. Currently, Merchant uses a paper-based system to keep up with customer billing. He feels that he would have better control over the billing and cash receipts if used a computerized system. Merchant specializes in accounting, tax and consulting, but he occasionally provides special services for his clients. After an engagement, Merchant provides the total number of billable hours to his bookkeeper, who then types up an invoice and sends it to the client. When the client pays the bill, the bookkeeper will stamp the invoice as PAID and deposit the check or cash into the bank.

Other information:

Clients typically utilize more than one of Merchants services.

An engagement consists of only one type of service.

An engagement may have more than one employee working on it.

A service may be performed on more than one engagement.

Most often an engagement is paid for in full when completed. For engagements that span more than a month or so, clients are typically required to pay a 50% deposit and the end of the first month and the remainder when the work is completed.

Clients can pay for multiple engagements on one check.

Cash receipts are deposited into the main checking account.

Required: Create an ERD (based on the REA model) for James Merchant, CPAs revenue cycle. The ERD must be completed using a computer application. I recommend PowerPoint as it is easy to manipulate, and all the symbols are available or easy to create.

Part II: Create a List of Tables Create a list of tables including unique tables and relationship tables. See Figure 14-12 in the Simkin textbook or the layout we used in class to complete this part. For each table, be sure to include the primary key, any foreign key(s), and other attributes based on the data collected by the firm as shown in the table below. Data Collected Services Description, rate per hour Bank Account number (GL), account type (checking or savings), beginning balance Clients Client name, client type, address, city, state, zip code, phone number Employees First name, middle initial, last name, address, city, state, zip code, phone number Engagements Invoice number, engagement number, service type, client, employee(s), date started, date completed, billable hours by employee Cash Receipts Cash receipt number, invoice number, employee, client, date, amount received Keep in mind that you may need to add attributes to this list of data collected. For example: for the Service table, you would need a primary key such as service number or service ID. Part II: Create a List of Tables Create a list of tables including unique tables and relationship tables. See Figure 14-12 in the Simkin textbook or the layout we used in class to complete this part. For each table, be sure to include the primary key, any foreign key(s), and other attributes based on the data collected by the firm as shown in the table below. Data Collected Services Description, rate per hour Bank Account number (GL), account type (checking or savings), beginning balance Clients Client name, client type, address, city, state, zip code, phone number Employees First name, middle initial, last name, address, city, state, zip code, phone number Engagements Invoice number, engagement number, service type, client, employee(s), date started, date completed, billable hours by employee Cash Receipts Cash receipt number, invoice number, employee, client, date, amount received Keep in mind that you may need to add attributes to this list of data collected. For example: for the Service table, you would need a primary key such as service number or service ID