Cumberland Water Sports
Cumberland Water Sports is a corporate merchandising business that sells personal watercraft ("jet skis") and uses a FIFO-based perpetual inventory system.
Daily transactions and adjusting and closing entries are recorded for the last month of the last quarter of the fiscal year. Each week of the last month is divided into “modules". At the end of each "module", a trial balance is printed and checked against the account balances in a “Check It Out Box” which shows the correct balances of several accounts that have had significant activity during the period. At the mid-point of the project, several financial documents are printed and used to complete a Mid-Point Evaluation.
At the end of the last "module", a bank reconciliation is completed and the bank reconciliation entries and the quarter-end adjusting entries are recorded. The final step is printing the financial statements, receivable and payable schedules, inventory ledger, and selected ledger cards, closing the general ledger (an automatic process), and printing a post-closing trial balance. The printed financial statements and other documents are used to complete the Final Evaluation.
Evaluation questions are graded electronically and can be submitted in printed form or e-mailed to the instructor. The instructor can require key documents, such as the income statement, to be attached to the e-mailed, graded questions.
Bonus Feature: A Topic Review program is included with Cumberland Water Sports. Topic Review provides users an opportunity to review in True-False, Multiple-Choice, or Analysis and Record format, a series of accounting topics, such as journalizing, posting, adjusting and closing entries, purchases, sales, inventory valuation, bad debts expense, depreciation, notes, and cash control.