Veideretti Cabinets is a computerized end-of-semester project that requires the student to analyze, prepare, and enter journal entries for the last week of the quarter, the end-of-month bank reconciliation, and adjusting entries. The program uses a perpetual inventory system, and the Merchandise Inventory account balance is automatically updated when purchases, sales, or sales returns are recorded.
The journal entries provide a review of expenses and prepaid expenses, accounts receivable, accounts payable, bad debts, purchases and sales of merchandise, notes and interest, accruals and deferrals, and the purchase and disposal of assets.
At the end of the fourth week of transactions, students are required to print a trial balance and compare account balances to prepared list of key accounts and their balances. Error corrections are easy to make.
After completing the bank reconciliation and adjusting entries, students are required to print their financial statements, schedules of receivables and payable, and specific ledger cards, use an automatic closing-of-the-ledgers process, print a post-closing trial balance, and answer analytical questions related to their work, cash flows, interest calculations, "what if" scenarios, and their financial statements.