Zack’s Bike Hut
Zack’s Bike Hut is a small corporation that uses a perpetual inventory system and closes its books on a quarterly basis. It is ideally suited for first and second year accounting students.
Students are required to entry daily, adjusting, and closing entries for the last month of the second quarter of the fiscal year.
For each purchase and sale, students are required to enter the stock number and number of units of each unit purchased or sold. For each sale, the debit to the Cost of Goods Sold and the credit to Merchandise Inventory is automatically journalized and posted to the general ledger.
Each week of the month is divided into “modules". At the end of each module (Week), students are required to print a trial balance and check their account balances against a “Check It Out Box”. This box contains the correct balances of several of the accounts that have had significant activity during the week and are unique to that student's general ledger account balances. At the mid-point of the project, students are required to answer questions on the Mid-Project Evaluation. The questions and answers are based on the individual student's financial documents.
At the end of the last module (Week 4), after completing the bank reconciliation, students must enter the bank reconciliation entries and the quarter-end adjusting entries. After printing the financial statements, receivable and payable schedules, and selected ledger cards, as the final step in the practice set, students close the books (this is an automatic process) and print a post-closing trial balance. Using their printed financial statements and other documents, students are required to answer the final questions on the Final Evaluation. The questions and answers are based on the individual student's financial documents.
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 graded questions.
Additional Feature: A Topic Review program is included with Zacks Bike Hut. 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.