This practice set, now in its 5th edition with this web-based online program, is developed for the first year accounting major. The Granite Bay Jet Ski II practice set uses the corporate form of ownership using a perpetual inventory system and subsidiary ledger for merchandise inventory.
Granite Bay Jet Ski, Incorporated, Level II is a computerized practice set that requires the student to enter daily, adjusting, and closing entries for the last month of the second quarter of the fiscal year. Granite Bay Jet Ski, Level II, maintains subsidiary ledgers for Accounts Receivable, Accounts Payable, and Merchandise Inventory. The month is divided into four 7 day modules starting on June 4th. At the end of each module, the students are required to print a trial balance and check their account balances against the “Check It Out Box”. This box contains the correct balances of several of the accounts that have had significant activity, or no activity during this data entry period. The students may use their general journal, trial balance and check figures to locate their error/s and correct them before continuing. At the mid-point of the project, (end of module two) the students are required to print several documents and to answer the first 50 Mid-Point Evaluation questions.
After completing modules 3 and 4 to end the quarter and preparing the bank reconciliation, adjusting and closing entries are recorded. After printing the financial statements, receivable and payable schedules, and selected ledger cards, students close the books (this is an automatic process) and print a post-closing trial balance. When the financial statements and selected documents are printed, the student may use a “Check It Out Box”, make corrections (if necessary), and then use the final documents to answer 50 additional questions on the Final Evaluation form.
- 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.