SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS gk gk
Chapter 1. Accounting in Action
gk gk gk gk
Chapter 2. The Recording Process
gk gk gk gk
Chapter 3. Adjusting the Accounts
gk gk gk gk
Chapter 4. Completing the Accounting Cycle
gk gk gk gk gk
Chapter 5. Accounting for Merchandising Operations
gk gk gk gk gk
Chapter 6. Inventories
gk gk
Chapter 7. Fraud, Internal Control and Cash
gk gk gk gk gk gk
Chapter 8. Accounting for Receivables
gk gk gk gk
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
gk gk gk gk gk gk gk gk
Chapter 10. Liabilities
gk gk
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders
gk gk gk gk gk gk gk
Equity
gk
Chapter 12. Statement of Cash Flows
gk gk gk gk gk
Chapter 13. Financial Analysis: The Big Picture
gk gk gk gk gk gk gk
,CHAPTER 1
gk
Accounting in Action gk gk
ASSIGNMENTgkCLASSIFICATIONgkTABLE
BriefgkExer A
LearninggkObjectives Questions cises DogkIt! Exercises Problems
1. 1,gk2,gk3,gk4,gk5 1 1,gk2
Identifygkthegkactivitiesgkan
dgkusersgkassociatedgkwithgka
ccounting.
2.gkExplaingkthegkbuildinggkblocksgkofgk 6,gk7,gk8,gk9,gk10 2 3,gk4
accounting:gkethics,gkprinciples,gk
andgkassumptions.
3. 11,gk12,gk13,gk14. 1,gk2,gk3,gk4,gk5 3 5
Stategkthegkaccountinggke 22
quation,gkandgkdefinegkitsgk
components.
4. 15,gk16,gk18 6,gk7,gk8,gk9 4 6,gk7,gk8 1A,gk2A,gk4A,
Analyzegkthegkeffectsgkofgkbusi 5A
nessgktransactionsgkongkthegkacc
ountinggkequation.
5. 17,gk19,gk20,gk21, 10,gk11 5 8,gk9,gk10,gk11, 2A,gk3A,gk4A,
Describegkthegkfourgkfinancialgks 12,gk13,gk14,gk15, 5A
tatementsgkandgkhowgktheygkare 16,gk17,gk18
gkprepared.
, ANSWERS TO QUESTIONS gk gk
1. True.gkVirtuallygkeverygkorganizationgkandgkpersongkingkourgksocietygkusesgkaccountinggkinformation.gkBusines
ses,gkinvestors,gkcreditors,gkgovernmentgkagencies,gkandgknot-for-
profitgkorganizationsgkmustgkusegkaccountinggkinformationgktogkoperategkeffectively.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
2. Accountinggkisgkthegkprocessgkofgkidentifying,gkrecording,gkandg k communicatingg k thegkeconomicgkeventsgkof
gkangkorganizationgktogkinterestedgkusersgkofgkthegkinformation.gkThegkfirstgkactivitygkofgkthegkaccountinggkproc
essgkisgktogkidentifygkeconomicgkeventsgkthatgkaregkrelevantgktogkagkparticulargkbusiness.gkOncegkidentifiedgkand
gkmeasured,gkthegkeventsgkaregkrecordedgktogkprovidegkagkhistorygkofgkthegkfinancialgkactivitiesgkofgkthegkorgani
zation.gkRecordinggkconsistsgkofgkkeepinggkagkchronologicalgkdiarygkofgkthesegkmeasuredgkeventsgkingkankgorderl
ygkandgksystematicgkmanner.gkThegkinformationgkisgkcommunicatedgkthroughgkthegkpreparationgkandgkdistribu
tiongkofgkaccountingg k reports,g k theg k mostg k commong k ofg k whichgkareg k calledgkfinancialgkstatements.kgAg
kvitalgkelementgkingkthegkcommunicationgkprocessgkisgkthegkaccountant’sgkabilitygkandgkresponsibilitygktogkanal
yzegkandgkinterpretgkthegkreportedgkinformation.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
3. (a)gkInternalgkusersgkaregkthosegkwhogkplan,gkorganize,gkandgkrungkthegkbusinessgkandgkthereforegkaregkofficersg
kandgkothergkdecisiongkmakers.
(b) Togkassistgkmanagement,gkaccountinggkprovidesgkinternalgkreports.gkExamplesgkincludegkfinancialgkcomp
arisonsgkofgkoperatinggkalternatives,gkprojectionsgkofg k incomegkfromgknewgksalesg k campaigns,kgandgkfor
ecastsgkofgk cashgkneedsgkforgkthegknextgkyear.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
4. (a) Investorsgk(owners)gkusegkaccountinggkinformationgktogkmakegkdecisionsgktogkbuy,gkhold,gkorgksellgkstock.
(b) Creditorsgkusegkaccountinggkinformationgktogkevaluategkthegkrisksgkofgkgrantinggkcreditgkorgklendinggkmoney.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
5. False.gkBookkeepinggkusuallygkinvolvesgkonlygkthegkrecordinggkofgkeconomicgkeventsgkandgkthereforegkisgkjustgk
onegkpartgkofgkthegkentiregkaccountinggkprocess.gkAccounting,gkongkthegkothergkhand,gkinvolvesgkthegkentiregkpr
ocessgkofgkidentifying,gkrecording,gkandgkcommunicatinggkeconomicgkevents.
LOg k 1,g k BT:g k C,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
6. HarpergkTravelgkAgencygkshouldgkreportgkthegklandgkatgk$85,000gkongkitsgkDecembergk31,g k 2022g k balancegksh
eet.gkThisgkisgktruegknotgkonlygkatgkthegktimegkthegklandgkisgkpurchased,gkbutgkalsogkovergkthegktimegkthegklandgkisg
kheld.gkIngkdetermininggkwhichgkmeasurementgkprinciplegktogkusegk(historicalgkcostgkorgkfairgkvalue)gkcompanie
sgkweighgkthegkfactualgknaturegkofgkcostgkfiguresgkversusgkthegkrelevancegkofgkfairgkvalue.gkIngkgeneral,gkcompan
iesgkusegkhistoricalgkcost.gkOnlygkingksituationsgkwheregkassetsgkaregkactivelygktradedgkdog k companiesgkapplygkt
hegkfairgkvaluegkprinciple.
LOg k 2,g k BT:g k C,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Measurement,g k Analysisg k andg k Interpretat
iong k IMA:gkReporting
7. Thegkmonetarygkunitgkassumptiongkrequiresgkthatgkonlygktransactiongkdatagkcapablegkofgkbeinggkexpressedgking
ktermsgkofgkmoneygkbegkincludedgkingkthegkaccountinggkrecords.gkThisgkassumptiongkenablesgkaccountinggktogk
quantifygk(measure)gkeconomicgkevents.
LOgk2,gkBT:gkK,gkDifficulty:gkEasy,gkTOT:gk2gkmin.,gkAACSB:gkNone,gkAICPAgkFC:gkMeasurement,gkAnalysisgkandgkInterpretationg k IMA:gkRepor
ting
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS gk gk
Chapter 1. Accounting in Action
gk gk gk gk
Chapter 2. The Recording Process
gk gk gk gk
Chapter 3. Adjusting the Accounts
gk gk gk gk
Chapter 4. Completing the Accounting Cycle
gk gk gk gk gk
Chapter 5. Accounting for Merchandising Operations
gk gk gk gk gk
Chapter 6. Inventories
gk gk
Chapter 7. Fraud, Internal Control and Cash
gk gk gk gk gk gk
Chapter 8. Accounting for Receivables
gk gk gk gk
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
gk gk gk gk gk gk gk gk
Chapter 10. Liabilities
gk gk
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders
gk gk gk gk gk gk gk
Equity
gk
Chapter 12. Statement of Cash Flows
gk gk gk gk gk
Chapter 13. Financial Analysis: The Big Picture
gk gk gk gk gk gk gk
,CHAPTER 1
gk
Accounting in Action gk gk
ASSIGNMENTgkCLASSIFICATIONgkTABLE
BriefgkExer A
LearninggkObjectives Questions cises DogkIt! Exercises Problems
1. 1,gk2,gk3,gk4,gk5 1 1,gk2
Identifygkthegkactivitiesgkan
dgkusersgkassociatedgkwithgka
ccounting.
2.gkExplaingkthegkbuildinggkblocksgkofgk 6,gk7,gk8,gk9,gk10 2 3,gk4
accounting:gkethics,gkprinciples,gk
andgkassumptions.
3. 11,gk12,gk13,gk14. 1,gk2,gk3,gk4,gk5 3 5
Stategkthegkaccountinggke 22
quation,gkandgkdefinegkitsgk
components.
4. 15,gk16,gk18 6,gk7,gk8,gk9 4 6,gk7,gk8 1A,gk2A,gk4A,
Analyzegkthegkeffectsgkofgkbusi 5A
nessgktransactionsgkongkthegkacc
ountinggkequation.
5. 17,gk19,gk20,gk21, 10,gk11 5 8,gk9,gk10,gk11, 2A,gk3A,gk4A,
Describegkthegkfourgkfinancialgks 12,gk13,gk14,gk15, 5A
tatementsgkandgkhowgktheygkare 16,gk17,gk18
gkprepared.
, ANSWERS TO QUESTIONS gk gk
1. True.gkVirtuallygkeverygkorganizationgkandgkpersongkingkourgksocietygkusesgkaccountinggkinformation.gkBusines
ses,gkinvestors,gkcreditors,gkgovernmentgkagencies,gkandgknot-for-
profitgkorganizationsgkmustgkusegkaccountinggkinformationgktogkoperategkeffectively.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
2. Accountinggkisgkthegkprocessgkofgkidentifying,gkrecording,gkandg k communicatingg k thegkeconomicgkeventsgkof
gkangkorganizationgktogkinterestedgkusersgkofgkthegkinformation.gkThegkfirstgkactivitygkofgkthegkaccountinggkproc
essgkisgktogkidentifygkeconomicgkeventsgkthatgkaregkrelevantgktogkagkparticulargkbusiness.gkOncegkidentifiedgkand
gkmeasured,gkthegkeventsgkaregkrecordedgktogkprovidegkagkhistorygkofgkthegkfinancialgkactivitiesgkofgkthegkorgani
zation.gkRecordinggkconsistsgkofgkkeepinggkagkchronologicalgkdiarygkofgkthesegkmeasuredgkeventsgkingkankgorderl
ygkandgksystematicgkmanner.gkThegkinformationgkisgkcommunicatedgkthroughgkthegkpreparationgkandgkdistribu
tiongkofgkaccountingg k reports,g k theg k mostg k commong k ofg k whichgkareg k calledgkfinancialgkstatements.kgAg
kvitalgkelementgkingkthegkcommunicationgkprocessgkisgkthegkaccountant’sgkabilitygkandgkresponsibilitygktogkanal
yzegkandgkinterpretgkthegkreportedgkinformation.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
3. (a)gkInternalgkusersgkaregkthosegkwhogkplan,gkorganize,gkandgkrungkthegkbusinessgkandgkthereforegkaregkofficersg
kandgkothergkdecisiongkmakers.
(b) Togkassistgkmanagement,gkaccountinggkprovidesgkinternalgkreports.gkExamplesgkincludegkfinancialgkcomp
arisonsgkofgkoperatinggkalternatives,gkprojectionsgkofg k incomegkfromgknewgksalesg k campaigns,kgandgkfor
ecastsgkofgk cashgkneedsgkforgkthegknextgkyear.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
4. (a) Investorsgk(owners)gkusegkaccountinggkinformationgktogkmakegkdecisionsgktogkbuy,gkhold,gkorgksellgkstock.
(b) Creditorsgkusegkaccountinggkinformationgktogkevaluategkthegkrisksgkofgkgrantinggkcreditgkorgklendinggkmoney.
LOg k 1,g k BT:g k K,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
5. False.gkBookkeepinggkusuallygkinvolvesgkonlygkthegkrecordinggkofgkeconomicgkeventsgkandgkthereforegkisgkjustgk
onegkpartgkofgkthegkentiregkaccountinggkprocess.gkAccounting,gkongkthegkothergkhand,gkinvolvesgkthegkentiregkpr
ocessgkofgkidentifying,gkrecording,gkandgkcommunicatinggkeconomicgkevents.
LOg k 1,g k BT:g k C,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Reporting,g k IMA:g k Reporting
6. HarpergkTravelgkAgencygkshouldgkreportgkthegklandgkatgk$85,000gkongkitsgkDecembergk31,g k 2022g k balancegksh
eet.gkThisgkisgktruegknotgkonlygkatgkthegktimegkthegklandgkisgkpurchased,gkbutgkalsogkovergkthegktimegkthegklandgkisg
kheld.gkIngkdetermininggkwhichgkmeasurementgkprinciplegktogkusegk(historicalgkcostgkorgkfairgkvalue)gkcompanie
sgkweighgkthegkfactualgknaturegkofgkcostgkfiguresgkversusgkthegkrelevancegkofgkfairgkvalue.gkIngkgeneral,gkcompan
iesgkusegkhistoricalgkcost.gkOnlygkingksituationsgkwheregkassetsgkaregkactivelygktradedgkdog k companiesgkapplygkt
hegkfairgkvaluegkprinciple.
LOg k 2,g k BT:g k C,g k Difficulty:g k Easy,g k TOT:g k 2g k min.,g k AACSB:g k None,g k AICPAg k FC:g k Measurement,g k Analysisg k andg k Interpretat
iong k IMA:gkReporting
7. Thegkmonetarygkunitgkassumptiongkrequiresgkthatgkonlygktransactiongkdatagkcapablegkofgkbeinggkexpressedgking
ktermsgkofgkmoneygkbegkincludedgkingkthegkaccountinggkrecords.gkThisgkassumptiongkenablesgkaccountinggktogk
quantifygk(measure)gkeconomicgkevents.
LOgk2,gkBT:gkK,gkDifficulty:gkEasy,gkTOT:gk2gkmin.,gkAACSB:gkNone,gkAICPAgkFC:gkMeasurement,gkAnalysisgkandgkInterpretationg k IMA:gkRepor
ting
