Solution Manual for Financial and managerial accounting 4th Edition Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

FULL SOLUTION MANUAL FOR JH JH JH




Financial And Managerial Accounting 4th Edition by Jerry J Weygan
JH JH JH JH JH JH JH JH JH




dt, Paul D Kimmel, Jill E Mitchel
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CHAPTER 1 JH




Accounting in Action J H J H




ASSIGNMENT CLASSIFICATION TABLE J H J H




Brief A
Learning J H Objectives J H Questions Exercises J H Do J H It! J H Exercises Problems

1. Identify the activitie J H J H 1, 2, 3, 4 5
J H J H J H 1 1, 2
s ,
and users associated
JH J H




with accounting. J H




2.J H J H Explain building blocks 6, 7, 8, 9
J H J H the J H J H J H J H J H 2 3, 4
,
of accounting: ethics, 10
principles, and
assumptions.

3. State the accounting J H J H 11, 12, 13,
J H 1, 2, 3, 4, 5 3 5
equation, and define J H J H 14.
its components. JH 22

4. Analyze the effects J H J H J H 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A,
J H J H 4A
of ,
business transactions on J H 5A
the accounting equation.
JH J H




5. Describe the four financial stat
J H JH JH JH JH 17, 19, 2 J H J H 10, 11
J H 5 2A, 3A,
J H J H 4A,
ements and how they are pr JH JH JH JH JH 0, 8, J H 9, 10,
J H J H11, 5A
epared. 21, 12, 13, 14,
J H J H




15,
16, 17, 18
J H J H




obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
JH JH JH JH JH JH JH JH JH

,1-2 © 2021 John Wiley & Sons, Inc. All rights reserved.
JH JH JH JH JH JH JH JH JH J H Weygandt, Financial & Managerial Accounting 4e, Solutions Manual
JH JH JH JH JH JH JH (For Instructor Use O
JH JH JH


nly)

,© 2021 John Wiley & Sons, Inc. All rights reserved. No part of this publication may be reprodu
J H J H J H J H J H J H J H J H J H J H J H J H J H J H J H J H J H



ced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanic
J H J H J H JH J H J H J H JH J H J H J H J H J H J H J H J H



al, photocopying, recording or otherwise, except as permitted by law. Advice on how to
J H J H J H JH J H J H J H J H J H J H J H J H J H




obtain permission to reuse this material is available at http://www.wiley.com/go/permissions.
JH JH JH JH JH JH JH JH JH

, ANSWERS TO QUESTIONS J H J H




1. True. Virtually every organization and person in our society uses accounting information. Business
JH JH JH JH JH JH JH JH JH JH JH JH




es, investors, creditors, government agencies, and not-for-
J H J H J H J H J H J H




profit organizations must use accounting information to operate effectively.
J H JH J H J H J H J H J H J H




LO J H J H 1, J H J H BT: J H J H K, J H J H Difficulty: J H J H Easy, J H J H TOT: J H J H 2 J H J H min., J H J H AACSB: J H J H None, J H J H AICPA J H J H FC: J H J H Reporting, J H J H IMA: J H J H Reporting

2. Accounting is the process of identifying, recording, and communicating the econo J H J H J H J H J H J H J H J H J H J H




mic events of an organization to interested users of the information. The first activity of the account
JH JH JH JH JH JH JH JH JH JH JH JH JH JH JH JH




ing process is to identify economic events that are relevant to a particular busi
J H J H J H J H J H J H J H J H J H J H J H J H JH




ness. Once identified and measured, the events are recorded to provide a hist
J H J H J H J H J H J H J H J H J H J H J H J H




ory of the financial activities of the organization. Recording consists of keeping
JH J H J H J H J H J H J H J H J H J H J H J H




a chronological diary of these measured events in an orderly and systematic manner. The informat
JH JH JH JH JH JH JH JH JH JH JH JH JH JH




ion is communicated through the preparation and distribution of accounting reports
J H J H J H J H J H J H J H J H J H JH




, the
J H most common
J Hof which are called financial statements. A vital
J H J H J H J H J H J H J H J H J H J H J H J H J H J H J H




element in the communication process is the accountant’s ability and responsibility to an
JH J H J H J H J H J H J H J H J H J H J H J H JH




alyze and interpret the reported information. J H J H J H J H J H




LO J H J H 1, J H J H BT: J H J H K, J H J H Difficulty: J H J H Easy, J H J H TOT: J H J H 2 J H J H min., J H J H AACSB: J H J H None, J H J H AICPA J H J H FC: J H J H Reporting, J H J H IMA: J H J H Reporting

3. (a) Internal users are those who plan, organize, and run the business and therefore are
J H J H J H J H J H J H J H J H J H J H J H J H J H J H JH




officers and other decision makers. J H J H J H J H




(b) To assist management, accounting provides internal reports. Examples include f
J H J H J H J H J H J H J H J H J H JH




inancial comparisons of operating alternatives, projections of income from ne J H J H J H J H J H J H J H J H J H J H




w sales campaigns, and forecasts of cash needs for the next year.
JH J H J H J H J H J H J H J H J H J H J H




LO J H J H 1, J H J H BT: J H J H K, J H J H Difficulty: J H J H Easy, J H J H TOT: J H J H 2 J H J H min., J H J H AACSB: J H J H None, J H J H AICPA J H J H FC: J H J H Reporting, J H J H IMA: J H J H Reporting

4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or
J H J H J H J H J H J H J H J H J H J H J H J H J H




sell
stock.
(b)
Creditors use accounting information to evaluate the risks of granting credit or lending mone
J H J H J H J H J H J H J H J H J H J H J H J H J H




y.
LO J H J H 1, J H J H BT: J H J H K, J H J H Difficulty: J H J H Easy, J H J H TOT: J H J H 2 J H J H min., J H J H AACSB: J H J H None, J H J H AICPA J H J H FC: J H J H Reporting, J H J H IMA: J H J H Reporting

5. False. Bookkeeping usually involves only the recording of economic events and th
J H J H J H J H J H J H J H J H J H J H J H




erefore is just one part of the entire accounting process. Accounting, on the ot
JH J H J H J H J H J H J H J H J H J H J H J H J H




her hand, involves the entire process of identifying, recording, and communicating
J H JH J H J H J H J H J H J H J H J H J




Heconomic events. J H




LO J H J H 1, J H J H BT: J H J H C, J H J H Difficulty: J H J H Easy, J H J H TOT: J H J H 2 J H J H min., J H J H AACSB: J H J H None, J H J H AICPA J H J H FC: J H J H Reporting, J H J H IMA: J H J H Reporting

6. Harper Travel Agency should report the land at $85,000 on its December 31,
J H J H J H J H J H J H J H J H J H J H J H J H J H




2022 balance sheet. This is true not only at the time the land is purchased,
JH J H J H J H J H J H J H J H J H J H J H J H J H J H J H




but also over the time the land is held. In determining which measurement principle t
J H J H JH J H J H J H J H J H J H J H J H J H J H J H




o use (historical cost or fair value) companies weigh the factual nature of cost
J H J H J H J H J H J H J H J H J H J H J H J H J H J




Hfigures versus the relevance of fair value. In general, companies use historical
J H J H JH J H J H J H J H J H J H J H J H J H




cost. Only in situations where assets are actively traded do
J H companies apply t J H J H JH J H J H J H J H J H J H J H J H J H




he fair value principle.
J H J H J H




LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, J H Analysis
and Interpretation JH IMA: Reporting J H




7. The monetary unit assumption requires that only transaction data capable of being expre
J H J H J H J H J H J H J H J H J H J H J H J H




ssed in terms of money be included in the accounting records. This assumption enables
J H J H J H J H J H J H J H J H J H J H J H J H JH




1-4 © 2021 John Wiley & Sons, Inc. All rights reserved.
JH JH JH JH JH JH JH JH JH J H Weygandt, Financial & Managerial Accounting 4e, Solutions Manual
JH JH JH JH JH JH JH (For Instructor Use O JH JH JH


nly)