1. WHAT THE SIMULATION DOES

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Apex Peak Outfitters LLC is a comprehensive, full-cycle bookkeeping practice set

centered on a retail outdoor gear and apparel business operating as a three-member

LLC (Alex Reed 40%, Blake Taylor 35%, Casey Morgan 25%) across the fourth quarter

(October 1 through December 31).

The simulation is available in two complementary delivery formats:

 - Interactive Web Application: Browser-based bookkeeping engine featuring

   automated posting, real-time ledger generation, automated validation, and

   multi-tab financial statement generation.

 - Workbook/Spreadsheet Format: Hands-on spreadsheet environment containing

   structured journals, general ledgers, subsidiary ledgers, and linked workpapers.

Key System Features & Scope:

 - 120 sequential daily business transactions spanning three operational months.

 - 9 period-end adjusting entries (3 per month for rent amortization, insurance,

   depreciation, and utility accruals).

 - General Journal and General Ledger with running account balances.

 - Dedicated Subsidiary Ledgers for Accounts Receivable (customer-level) and

   Accounts Payable (vendor-level).

 - Periodic Inventory Model calculating Cost of Goods Sold (COGS) using

   end-of-month physical counts:

       Beginning Inventory + Net Purchases + Freight-In - Ending Inventory = COGS

       (Ending Counts: Oct 31 = $11,670.00 | Nov 30 = $9,295.00 | Dec 31 = $9,515.00)

 - Real-time financial reports:

     * Monthly Income Statements and Balance Sheets (October, November, December)

     * Comprehensive Q4 Year-to-Date (YTD) Income Statement and Balance Sheet

2. WHAT THE STUDENT LEARNS

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By completing the simulation, students develop practical mastery across the entire

accounting cycle:

A. Full-Cycle Double-Entry Bookkeeping:

  - Accurately analyzing and recording debits and credits across assets,

    liabilities, equity, revenue, contra-revenue, COGS, and operating expenses.

  - Distinguishing cash transactions from accrual transactions (sales on terms,

    vendor purchasing on credit, cash sales, and receipts on account).

B. Subsidiary Ledger Control and Reconciliation:

  - Posting entries to individual customer and vendor subsidiary accounts.

  - Reconciling individual sub-ledger balances against general ledger control

    accounts (Account 1100 - Accounts Receivable and Account 2000 - Accounts Payable).

C. Periodic Inventory and Merchandising Accounting:

  - Accounting for freight-in, purchase returns, purchase allowances, and early

    payment purchase discounts (terms like 2/10, n/30).

  - Executing month-end COGS schedules using periodic physical inventory counts.

D. Month-End Adjusting Entries:

  - Amortizing prepaid assets (Prepaid Rent and Prepaid Insurance).

  - Computing and recording fixed asset depreciation.

  - Accruing unbilled operational expenses (such as accrued utilities payable).

E. Partnership / Multi-Member LLC Accounting:

  - Managing individual member capital accounts, owner draws, and guaranteed

    payments.

  - Allocating net income/losses among members according to contractual ownership

    percentages (40% / 35% / 25%).

F. Financial Statement Preparation and Analysis:

  - Understanding the flow of figures from the trial balance to the multi-step

    Income Statement and Balance Sheet.

  - Evaluating profitability margins (Gross Profit vs. Operating Income) and

    observing how monthly performance aggregates into cumulative quarterly results.