This practice set is algorithmic. Each student will have unique (individualized) beginning General Ledger and subsidiary ledger beginning balances. After successfully completing all of the transactions, each student's financial statements will be based on the student's unique algorithmic beginning balances.
Petunia Patch is a sole proprietorship using a periodic 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 last quarter of the fiscal year. Each week of the last month is divided into “modules". At the end of each module, students are required to print a trial balance and check their account balances against check figures that are unique to each student’s ledger balances. The check figures are the correct balances of several of the accounts that have had significant activity during the period. At the mid-point of the project, students are required to answer 25 questions on the Mid-Point Evaluation. The correct answers are based on the individual student's financial documents.
At the end of the last module, 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 general ledger accounts, 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 25 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 Petunia Patch. 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.