This 5th edition of the Gold Run Snowmobile practice set was developed for second semester accounting students. The Gold Run Snowmobile practice set uses the corporate form of ownership using a perpetual inventory system with a subsidiary ledger for merchandise inventory.
This computerized practice set requires students to enter daily, adjusting, and closing entries for the last month of the fourth quarter of the fiscal year. Gold Run Snowmobile maintains subsidiary ledgers for Accounts Receivable, Accounts Payable, and Merchandise Inventory. The month is divided into four 7 day modules starting on December 4th. At the end of each module of work, students are required to print a trial balance and verify the balances of their accounts against a “Check It Out Box” which contains the correct balances of several key accounts that have had significant activity, or no activity during the data-entry period. When discrepancies are discovered, students are guided through the use of printouts of their General Journal to locate the discrepancies and make correcting entries.
At the mid-point of the project (end of Module Two), students are required to print several documents and answer Mid-Point Evaluation questions which are directly related to the student’s work. At the end of Module Four, students prepare a bank reconciliation, enter the necessary journal entries, enter adjusting entries, closes the General Ledger (this is an automatic process), and print their financial statements. A final “Check It Out Box” is provided for verifying the accuracy of the student’s work. Students are required to print several documents, including the financial statements, and answer the Final Evaluation questions.
- The perpetual inventory system requires students to enter the inventory item numbers and number of units of the items being purchased or sold. When items are sold, the program automatically records and posts the required entry to Cost of Goods Sold and Merchandise Inventory. This automatic entry is based on the assigned markup on the cost of the inventory items sold.
- The last step in the accounting cycle, closing the General Ledger, is an automated process that requires the student to click on a “Close JE” button, and the closing entries are automatically recorded in the General Journal and posted to the General Ledger.
- The evaluation questions can be graded electronically and submitted to the instructor in printed form or e-mailed for recording. Key documents, such as the income statement and balance sheet, can be attached to the e-mail of the completed evaluation.