Please prepare a E-R Diagram to represent this scenario Frank, owner of...
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Accounting
Please prepare a E-R Diagram to represent this scenario
Frank, owner of F & C Construction, has the opportunity to bid on a job that includes remodeling two existing auto dealership offices and constructing a new office. This job would give F& C Construction a chance to move into a new market and expand its customer base. Frank is excited about the possibilities of making this move; however, to operate in this market, Frank will need to prepare formal business reports. Additionally, he is concerned about his ability to bid competitively and track the increased number of jobs this opportunity would provide Background F & C Construction is a small, sole proprietorship. The owner, Frank, started his construction company approximately two years ago. Business is increasing at a steady pace. Currently, jobs range in size from small (kitchen countertop replacements, wooden decks) to large (additions to homes). His customers are individual homeowners Advertising is predominantly by word of mouth. The company logo is on both company trucks and a placard is placed in a high-visibility location at job sites. Business cards are posted on bulletin boards in local stores and handed out at every opportunity. Satisfied customers and suppliers have made many referrals. F& C Construction is known for high standards of workmanship, using quality materials, and a no-surprises billing policy. (lf Frank forgets to include a charge in the estimate, it is not added on at a later date. If the customer and Frank negotiate a change in the planned work, the bill is modified accordingly.) The company currently employs Frank and two construction workers. Frank and his two workers are licensed to do general contracting work only; therefore, any plumbing or electrical work associated with a job is subcontracted out. Caren, Frank's wife, does the bookkeeping on a part-time basis. A tax accountant is retained as a financial adviser and for filing all necessary tax documents F & C Construction is run out of an office in Frank's home. A telephone answering machine takes calls whenever Frank and Caren are both away from the office. F & C Construction's physical assets include two pickup trucks, an assortment of large and small tools, and an inventory of supplies (screws, nuts, bolts, spackle, etc.) that is stored in a shed or on the trucks Sales When a potential customer calls to request a bid on a job, an appointment is scheduled. Frank does all of the bidding for F & C Construction. A formal proposal (Fig. 1) is completed and submitted to the customer. If the customer accepts the proposal, it is signed and becomes a legal contract. The customer keeps one copy, and F & C Construction retains the other copy. The contract also serves as the accounts receivable record, since it includes a schedule of payments and a work schedule. To date, due to the limited size of the business, keeping track of receivables due from customers has not been a
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