Please assist with number 6. the question would like 2 examples of internal controls you would implement and justifications for a through j.
Comprehensive Problem Part 4 of5 Each part of the comprehensive problem is based on Big Marker (www.bigmarker.com). Consider the narrative in Part 1 as necessary in responding to the following questions on business processes. Consider the following transactions from Big Marker's accounting information system. a. Accrued one month's interest on an existing note payable, $300. b. Billed 30 communities for monthly dues of $600. c. Borrowed $10,000 from First National Bank with a 6-month, 4% note payable. d. 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. e. Depreciated computer servers, $8,000. f. Hired a new employee for the Development Team. The new employee's salary will be $45,000 annually g. Paid six months' rent in advance, $12,000. h. Purchased new computer servers from Dell, $40,000. i. Reimbursed employees for business expenses: Supplies, $500. Travel, s1,500. j. Took an inventory of supplies on hand, which revealed $450 supplies used 6. For each transaction, suggest two internal controls you would implement. Justify your response Here's an example to guide you: . Transaction: Big Marker purchased supplies on account, $100. . Business process: Acquisition/payment Journal entry: Debit Supplies $100. Credit Accounts Payable $100. . Elements: Supplies is an asset, accounts payable, a liability. . Forms: Purchase requisition and purchase order. e Additional informatio n: name of the primary contact person at the vendor, specific type and quantity of supplies purchased (e.g, 10 boxes of paper clips) . Internal controls: Transaction authorizations would ensure that only the Purchasing department can issue purchase orders. Sending a blind copy of the purchase order to the Receiving department would aid in the segregation of duties. Comprehensive Problem Part 4 of5 Each part of the comprehensive problem is based on Big Marker (www.bigmarker.com). Consider the narrative in Part 1 as necessary in responding to the following questions on business processes. Consider the following transactions from Big Marker's accounting information system. a. Accrued one month's interest on an existing note payable, $300. b. Billed 30 communities for monthly dues of $600. c. Borrowed $10,000 from First National Bank with a 6-month, 4% note payable. d. 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. e. Depreciated computer servers, $8,000. f. Hired a new employee for the Development Team. The new employee's salary will be $45,000 annually g. Paid six months' rent in advance, $12,000. h. Purchased new computer servers from Dell, $40,000. i. Reimbursed employees for business expenses: Supplies, $500. Travel, s1,500. j. Took an inventory of supplies on hand, which revealed $450 supplies used 6. For each transaction, suggest two internal controls you would implement. Justify your response Here's an example to guide you: . Transaction: Big Marker purchased supplies on account, $100. . Business process: Acquisition/payment Journal entry: Debit Supplies $100. Credit Accounts Payable $100. . Elements: Supplies is an asset, accounts payable, a liability. . Forms: Purchase requisition and purchase order. e Additional informatio n: name of the primary contact person at the vendor, specific type and quantity of supplies purchased (e.g, 10 boxes of paper clips) . Internal controls: Transaction authorizations would ensure that only the Purchasing department can issue purchase orders. Sending a blind copy of the purchase order to the Receiving department would aid in the segregation of duties
