Develop a corporation chart of accounts, taking into consideration the following:
·Capital structure (debt and or equity)
·Employees with associated payroll accounts
·Tangible plant assets with associated depreciation accounts
There should be a minimum of 4 employees and at least 3 tangible assets. The corporation is a merchandising operation, so you will need to consider the necessary accounts.
Develop the first month's transactions. Prepare the first month's journal entries based on your chart of accounts.
·You will need to determine and explain your choice of depreciation method, choice of debt structure, and consider the rates of pay for the employees.
·In your narrative, discuss how ethics is related to a company having a chart of accounts. What kinds of internal controls might be helpful in your particular company? List a minimum of 3 internal controls.
·Consider the cash flow statement areas of operating, investing, and financing. Given your company type and the debt make-up, discuss the importance of the cash flow statement. What section of the cash flow statement is the most important? Why?