Mr Hunter leaves his Certificate of Title in safe custody with his solicitor, Mr Matthews, along with an executed Transfer. The name has been left blank on the transfer. Mr….
Design the following tables for Dreambox’s accounting information system: client, provide services, client/provide services.
Dreambox Creations ( www.dreamboxcreations.com ) was
incorporated as an S Corporation in November 1999 by six founding members, two of
whom are still involved in the business along with several other employees. The firm’s
operations focus on Web development and hosting, design and implementation of corporate
intranets, systems integration, and back-office management systems.
Dreambox’s sales/collection proess typically begins with an initial contact from a
client, via either phone or e-mail. Dan, one of the two founders, consults with the client
and develops an initial requirements assessment; the firm then submits a written
cost estimate for the client’s consideration. In a few cases, Dreambox is part of a formal
bidding process. If the client accepts the cost estimate, Dan writes up a formal
contract and then collects half the proposed fee in advance. The firm issues invoices
periodically throughout the work; those invoices are generally payable on receipt.
Once the initial work is completed, the client may stay with Dreambox for subsequent
maintenance. Maintenance is handled via monthly billing; no client signs up for
a contract for a certain maintenance time period, although Dreambox does offer financial
incentives for bulk purchases. Dreambox accepts payment via check only; Dan
deposits all cash receipts weekly in the bank and reconciles the bank statement daily.
At year-end, the company provides its tax preparer with a summary of revenues and
expenses compiled by hand. Dreambox utilizes Quicken for printing its checks.
a. Using one or more techniques specified by your instructor, document Dreambox’s sales/
b. Consider the list of common documents in Table 11.1 . How do the items in the list correlate
with Dreambox’s operations?
c. What are Dreambox’s risk exposures? What internal controls would you recommend to
d. Design the following tables for Dreambox’s accounting information system: client, provide
services, client/provide services.
e. What forms of information technology would be useful to Dreambox?