SOLUTION MANUAL m
Financial Accounting 11th Edition
m m m
by Jerry J. Weygandt, Paul D. Kimmel
m m m m m m
m Chapters 1 - 13 | Complete
m m m m m
,TABLE OF CONTENTS m m
Chapter 1. Accounting in Action
m m m m
Chapter 2. The Recording Process
m m m m
Chapter 3. Adjusting the Accounts
m m m m
Chapter 4. Completing the Accounting Cycle
m m m m m
Chapter 5. Accounting for Merchandising Operations
m m m m m
Chapter 6. Inventories
m m
Chapter 7. Fraud, Internal Control and Cash
m m m m m m
Chapter 8. Accounting for Receivables
m m m m
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
m m m m m m m m
Chapter 10. Liabilities
m m
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ E
m m m m m m m m
quity
Chapter 12. Statement of Cash Flows
m m m m m
Chapter 13. Financial Analysis: The Big Picture
m m m m m m m
,CHAPTER 1
m
Accounting in Action m m
ASSIGNMENT CLASSIFICATION TABLE
m m
BriefmExerc A
LearningmObjectives Questions ises DomIt! Exercises Problems
1. 1,m2,m3,m4,m5 1 1,m2
Identifymthemactivitiesman
dmusersmassociatedmwithma
ccounting.
2.mExplainmthembuildingmblocksmofmac 6,m7,m8,m9,m10 2 3,m4
counting:methics,mprinciples,man
dmassumptions.
3. 11,m12,m13,m14. 1,m2,m3,m4,m5 3 5
Statemthemaccountingmeq 22
uation,mandmdefinemitsmco
mponents.
4. 15,m16,m18 6,m7,m8,m9 4 6,m7,m8 1A,m2A,m4A,
Analyzemthemeffectsmofmbusine 5A
ssmtransactionsmonmthemaccoun
tingmequation.
5. 17,m19,m20,m21, 10,m11 5 8,m9,m10,m11, 2A,m3A,m4A,
Describemthemfourmfinancialmst 12,m13,m14,m15, 5A
atementsmandmhowmtheymaremp 16,m17,m18
repared.
, ANSWERS TO QUESTIONS m m
1. True.mVirtuallymeverymorganizationmandmpersonminmourmsocietymusesmaccountingminformation.mBusinesses,m
investors,mcreditors,mgovernmentmagencies,mandmnot-for-
profitmorganizationsmmustmusemaccountingminformationmtomoperatemeffectively.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
2. Accountingmismthemprocessmofmidentifying,mrecording,mandm communicatingm themeconomicmeventsmofmanmo
rganizationmtominterestedmusersmofmtheminformation.mThemfirstmactivitymofmthemaccountingmprocessmismtomid
entifymeconomicmeventsmthatmaremrelevantmtomamparticularmbusiness.mOncemidentifiedmandmmeasured,mthem
eventsmaremrecordedmtomprovidemamhistorymofmthemfinancialmactivitiesmofmthemorganization.mRecordingmcon
sistsmofmkeepingmamchronologicalmdiarymofmthesemmeasuredmeventsminmanmorderlymandmsystematicmmanner.m
Theminformationmismcommunicatedmthroughmthempreparationmandmdistributionmofmaccountingm reports,m th
em mostm commonm ofm whichmarem calledmfinancialmstatements.mAmvitalmelementminmthemcommunicationmpr
ocessmismthemaccountant’smabilitymandmresponsibilitymtomanalyzemandminterpretmthemreportedminformation.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
3. (a)mInternalmusersmaremthosemwhomplan,morganize,mandmrunmthembusinessmandmthereforemaremofficersmandm
othermdecisionmmakers.
(b) Tomassistmmanagement,maccountingmprovidesminternalmreports.mExamplesmincludemfinancialmcomparis
onsmofmoperatingmalternatives,mprojectionsmofm incomemfrommnewmsalesm campaigns,mandmforecastsmo
fm cashmneedsmformthemnextmyear.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
4. (a) Investorsm(owners)musemaccountingminformationmtommakemdecisionsmtombuy,mhold,mormsellmstock.
(b) Creditorsmusemaccountingminformationmtomevaluatemthemrisksmofmgrantingmcreditmormlendingmmoney.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
5. False.mBookkeepingmusuallyminvolvesmonlymthemrecordingmofmeconomicmeventsmandmthereforemismjustmonem
partmofmthementiremaccountingmprocess.mAccounting,monmthemothermhand,minvolvesmthementiremprocessmofmi
dentifying,mrecording,mandmcommunicatingmeconomicmevents.
LOm 1,m BT:m C,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
6. HarpermTravelmAgencymshouldmreportmthemlandmatm$85,000monmitsmDecemberm31,m 2022m balancemsheet.mT
hismismtruemnotmonlymatmthemtimemthemlandmismpurchased,mbutmalsomovermthemtimemthemlandmismheld.mInmdet
erminingmwhichmmeasurementmprinciplemtomusem(historicalmcostmormfairmvalue)mcompaniesmweighmthemfact
ualmnaturemofmcostmfiguresmversusmthemrelevancemofmfairmvalue.mInmgeneral,mcompaniesmusemhistoricalmcost.
mOnlyminmsituationsmwheremassetsmaremactivelymtradedmdom companiesmapplymthemfairmvaluemprinciple.
LOm 2,m BT:m C,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Measurement,m Analysism andm Interpretationm IMA:mRepo
rting
7. Themmonetarymunitmassumptionmrequiresmthatmonlymtransactionmdatamcapablemofmbeingmexpressedminmter
msmofmmoneymbemincludedminmthemaccountingmrecords.mThismassumptionmenablesmaccountingmtomquantifym
(measure)meconomicmevents.
LOm2,mBT:mK,mDifficulty:mEasy,mTOT:m2mmin.,mAACSB:mNone,mAICPAmFC:mMeasurement,mAnalysismandmInterpretationm IMA:mReporting
Financial Accounting 11th Edition
m m m
by Jerry J. Weygandt, Paul D. Kimmel
m m m m m m
m Chapters 1 - 13 | Complete
m m m m m
,TABLE OF CONTENTS m m
Chapter 1. Accounting in Action
m m m m
Chapter 2. The Recording Process
m m m m
Chapter 3. Adjusting the Accounts
m m m m
Chapter 4. Completing the Accounting Cycle
m m m m m
Chapter 5. Accounting for Merchandising Operations
m m m m m
Chapter 6. Inventories
m m
Chapter 7. Fraud, Internal Control and Cash
m m m m m m
Chapter 8. Accounting for Receivables
m m m m
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
m m m m m m m m
Chapter 10. Liabilities
m m
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ E
m m m m m m m m
quity
Chapter 12. Statement of Cash Flows
m m m m m
Chapter 13. Financial Analysis: The Big Picture
m m m m m m m
,CHAPTER 1
m
Accounting in Action m m
ASSIGNMENT CLASSIFICATION TABLE
m m
BriefmExerc A
LearningmObjectives Questions ises DomIt! Exercises Problems
1. 1,m2,m3,m4,m5 1 1,m2
Identifymthemactivitiesman
dmusersmassociatedmwithma
ccounting.
2.mExplainmthembuildingmblocksmofmac 6,m7,m8,m9,m10 2 3,m4
counting:methics,mprinciples,man
dmassumptions.
3. 11,m12,m13,m14. 1,m2,m3,m4,m5 3 5
Statemthemaccountingmeq 22
uation,mandmdefinemitsmco
mponents.
4. 15,m16,m18 6,m7,m8,m9 4 6,m7,m8 1A,m2A,m4A,
Analyzemthemeffectsmofmbusine 5A
ssmtransactionsmonmthemaccoun
tingmequation.
5. 17,m19,m20,m21, 10,m11 5 8,m9,m10,m11, 2A,m3A,m4A,
Describemthemfourmfinancialmst 12,m13,m14,m15, 5A
atementsmandmhowmtheymaremp 16,m17,m18
repared.
, ANSWERS TO QUESTIONS m m
1. True.mVirtuallymeverymorganizationmandmpersonminmourmsocietymusesmaccountingminformation.mBusinesses,m
investors,mcreditors,mgovernmentmagencies,mandmnot-for-
profitmorganizationsmmustmusemaccountingminformationmtomoperatemeffectively.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
2. Accountingmismthemprocessmofmidentifying,mrecording,mandm communicatingm themeconomicmeventsmofmanmo
rganizationmtominterestedmusersmofmtheminformation.mThemfirstmactivitymofmthemaccountingmprocessmismtomid
entifymeconomicmeventsmthatmaremrelevantmtomamparticularmbusiness.mOncemidentifiedmandmmeasured,mthem
eventsmaremrecordedmtomprovidemamhistorymofmthemfinancialmactivitiesmofmthemorganization.mRecordingmcon
sistsmofmkeepingmamchronologicalmdiarymofmthesemmeasuredmeventsminmanmorderlymandmsystematicmmanner.m
Theminformationmismcommunicatedmthroughmthempreparationmandmdistributionmofmaccountingm reports,m th
em mostm commonm ofm whichmarem calledmfinancialmstatements.mAmvitalmelementminmthemcommunicationmpr
ocessmismthemaccountant’smabilitymandmresponsibilitymtomanalyzemandminterpretmthemreportedminformation.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
3. (a)mInternalmusersmaremthosemwhomplan,morganize,mandmrunmthembusinessmandmthereforemaremofficersmandm
othermdecisionmmakers.
(b) Tomassistmmanagement,maccountingmprovidesminternalmreports.mExamplesmincludemfinancialmcomparis
onsmofmoperatingmalternatives,mprojectionsmofm incomemfrommnewmsalesm campaigns,mandmforecastsmo
fm cashmneedsmformthemnextmyear.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
4. (a) Investorsm(owners)musemaccountingminformationmtommakemdecisionsmtombuy,mhold,mormsellmstock.
(b) Creditorsmusemaccountingminformationmtomevaluatemthemrisksmofmgrantingmcreditmormlendingmmoney.
LOm 1,m BT:m K,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
5. False.mBookkeepingmusuallyminvolvesmonlymthemrecordingmofmeconomicmeventsmandmthereforemismjustmonem
partmofmthementiremaccountingmprocess.mAccounting,monmthemothermhand,minvolvesmthementiremprocessmofmi
dentifying,mrecording,mandmcommunicatingmeconomicmevents.
LOm 1,m BT:m C,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Reporting,m IMA:m Reporting
6. HarpermTravelmAgencymshouldmreportmthemlandmatm$85,000monmitsmDecemberm31,m 2022m balancemsheet.mT
hismismtruemnotmonlymatmthemtimemthemlandmismpurchased,mbutmalsomovermthemtimemthemlandmismheld.mInmdet
erminingmwhichmmeasurementmprinciplemtomusem(historicalmcostmormfairmvalue)mcompaniesmweighmthemfact
ualmnaturemofmcostmfiguresmversusmthemrelevancemofmfairmvalue.mInmgeneral,mcompaniesmusemhistoricalmcost.
mOnlyminmsituationsmwheremassetsmaremactivelymtradedmdom companiesmapplymthemfairmvaluemprinciple.
LOm 2,m BT:m C,m Difficulty:m Easy,m TOT:m 2m min.,m AACSB:m None,m AICPAm FC:m Measurement,m Analysism andm Interpretationm IMA:mRepo
rting
7. Themmonetarymunitmassumptionmrequiresmthatmonlymtransactionmdatamcapablemofmbeingmexpressedminmter
msmofmmoneymbemincludedminmthemaccountingmrecords.mThismassumptionmenablesmaccountingmtomquantifym
(measure)meconomicmevents.
LOm2,mBT:mK,mDifficulty:mEasy,mTOT:m2mmin.,mAACSB:mNone,mAICPAmFC:mMeasurement,mAnalysismandmInterpretationm IMA:mReporting
