Reference no: EM132991535

Question - Asset's acquisition begins when the department manager recognizes the need to obtain or replace an existing fixed asset. The manager prepares two copies of a purchase requisition; one is filed in the department, and one is sent to the purchasing department. The purchasing department uses the purchase requisition to prepare three copies of a purchase order. On copy of the purchase order is sent to the supplier, another copy is sent to the accounts payable department and the third copy is filed in the purchasing department. The receiving department receives the assets and packing slip from the vendor and prepares a receiving report. One copy of the receiving report is sent to accounts payable, one is sent to the department manager, and on is sent to the inventory department clerk who uses it to update the inventory records.

The accounts payable clerk receives the invoice, which she compares to the purchase order and receiving report. The accounts payable clerk inputs the information into the computer terminal, post the liability, updates the purchase journal and prints out the hardcopy of a journal voucher and cash disbursement voucher and also the supplier's invoice is sent to the general ledger department. The cash disbursement voucher and the supplier's invoice are then sent to the cash disbursement department.

The purchase order and the receiving report are filed in accounts payable. The cash disbursement clerk prepares and posts a check to the check register using the information from the supplier's invoice and cash disbursement, prints a hard copy of the check, which later be sent to the vendor. The cash disbursement voucher is sent on to the general ledger department.

The department manager also handles asset maintenance and asset disposal. The manager adjusts the fixed asset inventory subsidiary account balances as the assets depreciate over time. When an asset has reached the end of its useful life, a disposal report is prepared. The department manager sends an asset status summary to the general ledger. The general ledger department clerk reconciles the cash disbursements voucher, the journal voucher and the asset status summary and finally post it to the general ledger accounts.

Required - Prepare the Resource, Events and Agents (REA) model. Show the cardinalities for all the associations.