FULL SOLUTION MANUAL FOR
Financial And Managerial Accounting 4th Edition by Jerry J
Weygandt, Paul D Kimmel, Jill E Mitchel
CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
equation, and define its 22
components.
4. Analyze the effects of 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
business transactions on the 5A
accounting equation.
5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18
© 2021 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted,
in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to
obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
, ANSWERS TO QUESTIONS
1. True. Virtually every organization and person in .our .society .uses .accounting .information.
.Businesses, .investors, .creditors, .government .agencies, .and .not-for-profit .organizations .must
.use .accounting .information . to .operate .effectively.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
2. Accounting .is .the .process .of .identifying, .recording, .and . communicating . the .economic .events
.of .an .organization .to .interested .users .of .the .information. .The .first .activity .of .the .accounting
.process .is .to .identify .economic .events .that .are .relevant .to .a .particular .business. .Once
.identified .and .measured, .the .events .are .recorded .to .provide .a .history .of .the .financial
.activities .of .the .organization. .Recording .consists .of .keeping .a .chronological .diary .of .these
.measured .events .in .an .orderly .and .systematic .manner. .The .information .is .communicated
.through .the .preparation .and .distribution .of .accounting . reports, . the . most . common . of
. which .are . called .financial .statements. .A .vital .element .in .the .communication .process .is .the
.accountant’s .ability .and .responsibility .to .analyze .and . interpret .the .reported . information.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
3. (a) .Internal .users .are .those .who .plan, .organize, .and .run .the .business .and .therefore .are
.officers .and . other .decision .makers.
(b) To .assist .management, .accounting .provides .internal .reports. .Examples .include .financial
.comparisons .of .operating .alternatives, .projections .of . income .from .new .sales
.campaigns, .and .forecasts .of . cash .needs .for .the .next .year.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
4. (a) Investors .(owners) .use .accounting .information .to .make .decisions .to .buy, .hold, .or .sell .stock.
(b) Creditors .use .accounting .information .to .evaluate .the .risks .of .granting .credit .or .lending .money.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
5. False. .Bookkeeping .usually .involves .only .the .recording .of .economic .events .and .therefore .is
.just .one .part .of .the .entire .accounting .process. .Accounting, .on .the .other .hand, .involves .the
.entire .process .of .identifying, .recording, .and . communicating .economic .events.
LO . 1, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
6. Harper .Travel .Agency .should .report .the .land .at .$85,000 .on .its .December .31, . 2022 . balance
.sheet. .This .is .true .not .only .at .the .time .the .land .is .purchased, .but .also .over .the .time .the .land
.is .held. .In .determining .which .measurement .principle .to .use .(historical .cost .or .fair .value)
.companies .weigh .the .factual .nature .of .cost .figures .versus .the .relevance .of .fair .value. .In
.general, .companies .use .historical .cost. .Only .in .situations .where .assets .are .actively .traded .do
. companies .apply .the .fair .value .principle.
LO . 2, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Measurement, . Analysis . and
. Interpretation . IMA: .Reporting
7. The .monetary .unit .assumption .requires .that .only .transaction .data .capable .of .being .expressed
.in .terms .of .money .be .included .in .the .accounting .records. .This .assumption .enables
.accounting .to .quantify .(measure) .economic .events.
LO .2, .BT: .K, .Difficulty: .Easy, .TOT: .2 .min., .AACSB: .None, .AICPA .FC: .Measurement, .Analysis .and .Interpretation
. IMA:.Reporting
1-2 © 2021 John Wiley & Sons, Inc. All rights reserved. Weygandt, Financial & Managerial Accounting 4e, Solutions Manual (For Instructor Use Only)
,Questions .Chapter .1 .(Continued)
8. The .economic .entity .assumption .requires .that .the .activities .of .the .entity .be .kept .separate
.and.distinct .from .the . activities .of . its .owners .and .all .other .economic .entities.
LO .2, .BT: .K, .Difficulty: .Easy, .TOT: .2 .min., .AACSB: .None, .AICPA .FC: .Measurement, .Analysis .and .Interpretation
. IMA:.Reporting
9. The . three . basic . forms . of . business . organizations . are . (1) . proprietorship, . (2)
. partnership, . and
(3) . corporation.
LO . 2, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
10. One .of .the .advantages .Juana .would .enjoy .is .that .ownership .of .a .corporation .is .represented
.by .transferable .shares .of .stock. .This .would .allow .Juana .to .raise .money .easily .by .selling .a
.part .of .her .ownership .in .the .company. .Another .advantage .is .that .because .holders .of .the
.shares .(stockholders) .enjoy .limited .liability, .they .are .not .personally .liable .for .the .debts .of .the
.corporate .entity. .Also, .because .ownership .can .be .transferred .without .dissolving .the .corporation,
.the .corporation.enjoys .an .unlimited . life.
LO . 2, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
11. The .basic .accounting .equation .is .Assets .= .Liabilities .+ .Stockholders’ .Equity.
LO . 3, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
12. (a) . . . .Assets .are .resources .owned .by .a .business. .Liabilities .are .creditor .claims .against
.assets— .that .is, .existing .debts .and .obligations. .Stockholders’ .equity .is .the .ownership
.claim .on .total .assets.
(b) Stockholders’ .equity .is .affected .by .stockholders’ .investments, .dividends, .revenues, .and
.expenses.
LO . 3, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
13. The .liabilities .are .(b) .Accounts .payable .and .(g) .Salaries . and .Wages .Payable.
LO . 3, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
14. Yes, .a .business .can .enter .into .a .transaction .in .which .only .the .left .side .of .the .accounting
.equation .is . affected. . An . example . would . be . a . transaction . where . an . increase . in . one
. asset . is . offset . by .a .decrease .in .another .asset. .An .increase .in .the .Equipment .account
.which .is .offset .by .a .decrease .in .the . Cash .account .is .a . specific .example.
LO . 3, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
15. Business . transactions . are .the . economic . events . of . the . enterprise . recorded . by
. accountants.because . they .affect .the .basic . accounting .equation.
(a) No, . the . death . of . the . president . of . the . company . is . not . a . business . transaction . as . it
. does . not.affect .the .basic .accounting .equation.
(b) Yes, . supplies . purchased . on . account . is . a . business . transaction . as . it . affects . the
. basic.accounting .equation.
(c) No, . an . employee . being . fired . is . not . a . business . transaction . as . it . does . not . affect
. the . basic.accounting .equation.
LO . 4, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
16. (a) Decrease .assets .and .decrease .stockholders’ .equity.
(b) Increase .assets .and .decrease .assets.
(c) Increase .assets .and .increase .stockholders’ .equity.
(d) Decrease .assets .and .decrease .liabilities.
LO . 4, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
© 2021 John Wiley & Sons, Inc. All rights reserved. Weygandt, Financial & Managerial Accounting 4e, Solutions Manual (For Instructor Use Only) 1-3
, Questions .Chapter .1 .(Continued)
17. (a) Income .statement. (d) Balance .sheet.
(b) Balance .sheet. (e) Balance .sheet .and .retained .earnings .statement.
(c) Income .statement. (f) Balance .sheet.
LO . 5, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
18. No, .this .treatment .is .not .appropriate. .While .the .transaction .does .involve .a .receipt .of .cash, .it
.does .not .represent .revenues. .Revenues .are .the .gross .increase .in .stockholders’ .equity
.resulting .from .business .activities .entered .into .for .the .purpose .of .earning .income. .This
.transaction .is .simply .an .additional .investment .made .by .one .of . the .owners .of . the .business.
LO . 4, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
19. Yes. .Net .income .does .appear .on .the .income .statement—it .is .the .result .of .subtracting
.expenses .from .revenues. .In .addition, .net .income .appears . on . the .retained .earnings
.statement—it .is .shown .as .an .addition .to .the .beginning-of-period .retained .earnings. .Indirectly, .the
.net .income .of .a .company .is .also .included .on .the .balance .sheet. .It .is .included .in .the .end-of-
period .retained .earnings .which .appears .in .the .stockholders’ .equity .section .of .the .balance
.sheet.
LO . 5, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
20. (a) Ending .stockholders’ .equity .balance ...............................................................................$198,000
Beginning .stockholders’ .equity .balance .........................................................................158,000
Net . income....................................................................................................... $ . 40,000
(b) Ending .stockholders’ .equity .balance ...............................................................................$198,000
Beginning .stockholders’ .equity .balance .........................................................................158,000
40,000
Deduct: . Investment .............................................................................................. 16,000
Net . income....................................................................................................... $ . 24,000
LO . 5, . BT: . AN, . Difficulty: . Easy, . TOT: . 4 . min., . AACSB: . Analytic, . AICPA . FC: . Reporting, . IMA: . Reporting
21. (a) Total .revenues .($30,000 .+ .$70,000)..................................................................... $100,000
(b) Total . expenses . ($26,000 . + . $38,000)................................................................ $64,000
(c) Total .revenues ....................................................................................................... $100,000
Total .expenses ...................................................................................................... 64,000
Net . income....................................................................................................... $ . 36,000
LO . 5, . BT: . AP, . Difficulty: . Easy, . TOT: . 3 . min., . AACSB: . Analytic, . AICPA . FC: . Reporting, . IMA: . Reporting
22. Apple’s . accounting . equation . (in . millions) . at . September . 29, . 2018 . was . $365,725 . = . $258,578 . +
$107,147
LO . 3, . BT: . AP, . Difficulty: . Easy, . TOT: . 4 . min., . AACSB: . Analytic, . AICPA . FC: . Reporting, . IMA: . Reporting
1-4 © 2021 John Wiley & Sons, Inc. All rights reserved. Weygandt, Financial & Managerial Accounting 4e, Solutions Manual (For Instructor Use Only)
Financial And Managerial Accounting 4th Edition by Jerry J
Weygandt, Paul D Kimmel, Jill E Mitchel
CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 14. 1, 2, 3, 4, 5 3 5
equation, and define its 22
components.
4. Analyze the effects of 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
business transactions on the 5A
accounting equation.
5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18
© 2021 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or transmitted,
in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by law. Advice on how to
obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
, ANSWERS TO QUESTIONS
1. True. Virtually every organization and person in .our .society .uses .accounting .information.
.Businesses, .investors, .creditors, .government .agencies, .and .not-for-profit .organizations .must
.use .accounting .information . to .operate .effectively.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
2. Accounting .is .the .process .of .identifying, .recording, .and . communicating . the .economic .events
.of .an .organization .to .interested .users .of .the .information. .The .first .activity .of .the .accounting
.process .is .to .identify .economic .events .that .are .relevant .to .a .particular .business. .Once
.identified .and .measured, .the .events .are .recorded .to .provide .a .history .of .the .financial
.activities .of .the .organization. .Recording .consists .of .keeping .a .chronological .diary .of .these
.measured .events .in .an .orderly .and .systematic .manner. .The .information .is .communicated
.through .the .preparation .and .distribution .of .accounting . reports, . the . most . common . of
. which .are . called .financial .statements. .A .vital .element .in .the .communication .process .is .the
.accountant’s .ability .and .responsibility .to .analyze .and . interpret .the .reported . information.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
3. (a) .Internal .users .are .those .who .plan, .organize, .and .run .the .business .and .therefore .are
.officers .and . other .decision .makers.
(b) To .assist .management, .accounting .provides .internal .reports. .Examples .include .financial
.comparisons .of .operating .alternatives, .projections .of . income .from .new .sales
.campaigns, .and .forecasts .of . cash .needs .for .the .next .year.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
4. (a) Investors .(owners) .use .accounting .information .to .make .decisions .to .buy, .hold, .or .sell .stock.
(b) Creditors .use .accounting .information .to .evaluate .the .risks .of .granting .credit .or .lending .money.
LO . 1, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
5. False. .Bookkeeping .usually .involves .only .the .recording .of .economic .events .and .therefore .is
.just .one .part .of .the .entire .accounting .process. .Accounting, .on .the .other .hand, .involves .the
.entire .process .of .identifying, .recording, .and . communicating .economic .events.
LO . 1, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
6. Harper .Travel .Agency .should .report .the .land .at .$85,000 .on .its .December .31, . 2022 . balance
.sheet. .This .is .true .not .only .at .the .time .the .land .is .purchased, .but .also .over .the .time .the .land
.is .held. .In .determining .which .measurement .principle .to .use .(historical .cost .or .fair .value)
.companies .weigh .the .factual .nature .of .cost .figures .versus .the .relevance .of .fair .value. .In
.general, .companies .use .historical .cost. .Only .in .situations .where .assets .are .actively .traded .do
. companies .apply .the .fair .value .principle.
LO . 2, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Measurement, . Analysis . and
. Interpretation . IMA: .Reporting
7. The .monetary .unit .assumption .requires .that .only .transaction .data .capable .of .being .expressed
.in .terms .of .money .be .included .in .the .accounting .records. .This .assumption .enables
.accounting .to .quantify .(measure) .economic .events.
LO .2, .BT: .K, .Difficulty: .Easy, .TOT: .2 .min., .AACSB: .None, .AICPA .FC: .Measurement, .Analysis .and .Interpretation
. IMA:.Reporting
1-2 © 2021 John Wiley & Sons, Inc. All rights reserved. Weygandt, Financial & Managerial Accounting 4e, Solutions Manual (For Instructor Use Only)
,Questions .Chapter .1 .(Continued)
8. The .economic .entity .assumption .requires .that .the .activities .of .the .entity .be .kept .separate
.and.distinct .from .the . activities .of . its .owners .and .all .other .economic .entities.
LO .2, .BT: .K, .Difficulty: .Easy, .TOT: .2 .min., .AACSB: .None, .AICPA .FC: .Measurement, .Analysis .and .Interpretation
. IMA:.Reporting
9. The . three . basic . forms . of . business . organizations . are . (1) . proprietorship, . (2)
. partnership, . and
(3) . corporation.
LO . 2, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
10. One .of .the .advantages .Juana .would .enjoy .is .that .ownership .of .a .corporation .is .represented
.by .transferable .shares .of .stock. .This .would .allow .Juana .to .raise .money .easily .by .selling .a
.part .of .her .ownership .in .the .company. .Another .advantage .is .that .because .holders .of .the
.shares .(stockholders) .enjoy .limited .liability, .they .are .not .personally .liable .for .the .debts .of .the
.corporate .entity. .Also, .because .ownership .can .be .transferred .without .dissolving .the .corporation,
.the .corporation.enjoys .an .unlimited . life.
LO . 2, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
11. The .basic .accounting .equation .is .Assets .= .Liabilities .+ .Stockholders’ .Equity.
LO . 3, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
12. (a) . . . .Assets .are .resources .owned .by .a .business. .Liabilities .are .creditor .claims .against
.assets— .that .is, .existing .debts .and .obligations. .Stockholders’ .equity .is .the .ownership
.claim .on .total .assets.
(b) Stockholders’ .equity .is .affected .by .stockholders’ .investments, .dividends, .revenues, .and
.expenses.
LO . 3, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
13. The .liabilities .are .(b) .Accounts .payable .and .(g) .Salaries . and .Wages .Payable.
LO . 3, . BT: . K, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
14. Yes, .a .business .can .enter .into .a .transaction .in .which .only .the .left .side .of .the .accounting
.equation .is . affected. . An . example . would . be . a . transaction . where . an . increase . in . one
. asset . is . offset . by .a .decrease .in .another .asset. .An .increase .in .the .Equipment .account
.which .is .offset .by .a .decrease .in .the . Cash .account .is .a . specific .example.
LO . 3, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
15. Business . transactions . are .the . economic . events . of . the . enterprise . recorded . by
. accountants.because . they .affect .the .basic . accounting .equation.
(a) No, . the . death . of . the . president . of . the . company . is . not . a . business . transaction . as . it
. does . not.affect .the .basic .accounting .equation.
(b) Yes, . supplies . purchased . on . account . is . a . business . transaction . as . it . affects . the
. basic.accounting .equation.
(c) No, . an . employee . being . fired . is . not . a . business . transaction . as . it . does . not . affect
. the . basic.accounting .equation.
LO . 4, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
16. (a) Decrease .assets .and .decrease .stockholders’ .equity.
(b) Increase .assets .and .decrease .assets.
(c) Increase .assets .and .increase .stockholders’ .equity.
(d) Decrease .assets .and .decrease .liabilities.
LO . 4, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
© 2021 John Wiley & Sons, Inc. All rights reserved. Weygandt, Financial & Managerial Accounting 4e, Solutions Manual (For Instructor Use Only) 1-3
, Questions .Chapter .1 .(Continued)
17. (a) Income .statement. (d) Balance .sheet.
(b) Balance .sheet. (e) Balance .sheet .and .retained .earnings .statement.
(c) Income .statement. (f) Balance .sheet.
LO . 5, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
18. No, .this .treatment .is .not .appropriate. .While .the .transaction .does .involve .a .receipt .of .cash, .it
.does .not .represent .revenues. .Revenues .are .the .gross .increase .in .stockholders’ .equity
.resulting .from .business .activities .entered .into .for .the .purpose .of .earning .income. .This
.transaction .is .simply .an .additional .investment .made .by .one .of . the .owners .of . the .business.
LO . 4, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
19. Yes. .Net .income .does .appear .on .the .income .statement—it .is .the .result .of .subtracting
.expenses .from .revenues. .In .addition, .net .income .appears . on . the .retained .earnings
.statement—it .is .shown .as .an .addition .to .the .beginning-of-period .retained .earnings. .Indirectly, .the
.net .income .of .a .company .is .also .included .on .the .balance .sheet. .It .is .included .in .the .end-of-
period .retained .earnings .which .appears .in .the .stockholders’ .equity .section .of .the .balance
.sheet.
LO . 5, . BT: . C, . Difficulty: . Easy, . TOT: . 2 . min., . AACSB: . None, . AICPA . FC: . Reporting, . IMA: . Reporting
20. (a) Ending .stockholders’ .equity .balance ...............................................................................$198,000
Beginning .stockholders’ .equity .balance .........................................................................158,000
Net . income....................................................................................................... $ . 40,000
(b) Ending .stockholders’ .equity .balance ...............................................................................$198,000
Beginning .stockholders’ .equity .balance .........................................................................158,000
40,000
Deduct: . Investment .............................................................................................. 16,000
Net . income....................................................................................................... $ . 24,000
LO . 5, . BT: . AN, . Difficulty: . Easy, . TOT: . 4 . min., . AACSB: . Analytic, . AICPA . FC: . Reporting, . IMA: . Reporting
21. (a) Total .revenues .($30,000 .+ .$70,000)..................................................................... $100,000
(b) Total . expenses . ($26,000 . + . $38,000)................................................................ $64,000
(c) Total .revenues ....................................................................................................... $100,000
Total .expenses ...................................................................................................... 64,000
Net . income....................................................................................................... $ . 36,000
LO . 5, . BT: . AP, . Difficulty: . Easy, . TOT: . 3 . min., . AACSB: . Analytic, . AICPA . FC: . Reporting, . IMA: . Reporting
22. Apple’s . accounting . equation . (in . millions) . at . September . 29, . 2018 . was . $365,725 . = . $258,578 . +
$107,147
LO . 3, . BT: . AP, . Difficulty: . Easy, . TOT: . 4 . min., . AACSB: . Analytic, . AICPA . FC: . Reporting, . IMA: . Reporting
1-4 © 2021 John Wiley & Sons, Inc. All rights reserved. Weygandt, Financial & Managerial Accounting 4e, Solutions Manual (For Instructor Use Only)
