SOLUTION MANUAL
Accounting Principles, 9th Canadian Edition
Volume 1 & 2
By Jerry Weygandt, Donald Kieso,
Accounting Principles, 9th Canadian Edition
, TABLE OF CONTENTS
Volume 1
1. Accounting in Action
2. The Recording Process
3. Adjusting the Accounts
4. Completion of the Accounting Cycle
5. Accounting for Merchandising Operations
6. Inventory Costing
7. Internal Control and Cash
8. Accounting for Receivables
9. Long-Lived Assets
10. Current Liabilities and Payroll
Volume 2
9. Long-Lived Assets
10. Current Liabilities and Payroll
11. Financial Reporting Concepts
12. Accounting for Partnerships
13. Introduction to Corporations
14. Corporations: Additional Topics and IFRS
15. Non-Current Liabilities
16. Investments
17. The Cash Flow Statement
18. Financial Statement Analysis
CHAPTER 1
, Accounting in Action
Learning Objectives
1. Identify the use and users of accounting and the objective of
financial reporting.
2. Compare the different forms of business organization.
3. Explain the building blocks of accounting: ethics and the
concepts included in the conceptual framework.
4. Describe the components of the financial statements and
explain the accounting equation.
5. Analyze the effects of business transactions on the
accounting equation.
6. Prepare financial statements.
,Summary of Questions by Learning Objectives and Bloom‘s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Questions
1. 1 C 5. 3 C 9. 3 C 13. 4 K 17. 5 C
2. 1 C 6. 3 K 10. 3 C 14. 4 K 18. 5 AP
3. 1 C 7. 3 K 11. 3 C 15. 4 C 19. 6 K
4. 2 K 8. 3 C 12. 4 K 16. 4 K 20. 6 C
Brief Exercises
1. 1 K 5. 3 C 9. 4 AP 13. 5 AP 17. 6 AP
2. 2 C 6. 3 C 10. 4 AP 14. 4,5 AP 18. 6 AP
3. 3 AN 7. 4 C 11. 4 K 15. 4,6 AP
4. 3 C 8. 4 AP 12. 5 AP 16. 6 AP
Exercises
1. 1 C 5. 1,3,5 K 9. 3,5,6 C 13. 4,5 AP 17. 6 AP
2. 1 C 6. 4 AP 10. 5 C 14. 6 AP
3. 2 C 7. 4 AP 11. 5 C 15. 6 AP
4. 3 C 8. 5 C 12. 4,5 AP 16. 6 AP
Problems
1. 1 S 4. 4 AP 7. 3 ,4,5,6 AP 10. 6 AN
2. 2,3 AP 5. 3,5 C 8. 4,5,6 AP 11. 3,4,5,6 AP
3. 4 AP 6. 4,6 AP 9. 6 AP
,Legend: The following abbreviations will appear throughout the
solutions manual file.
LO Learning objective
Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
Communication Communication
Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
, ASSIGNMENT CLASSIFICATION TABLE
Brief Problems Problems
Learning Objectives Questions Exercises Exercises Set A Set B
1. Identify the use and 1, 2, 3 1 1, 2, 5 1 1
users of accounting
and the objective of
financial reporting.
2. Compare the different 4 2 3, 2 2
forms of business
organization.
3. Explain the building 5, 6, 7, 8, 3, 4, 5, 6 3, 4, 5, 9, 2, 5, 7, 2, 5, 7, 11
blocks of accounting: 9, 10, 11 10 11
ethics and the
concepts included in
the conceptual
framework.
4. Describe the 12, 13, 14. 7, 8, 9, 6, 7, 13 3, 4, 6, 7, 3, 4, 6, 7,
components of the 15, 16 10, 11, 15 8, 11 8, 11
financial statements
and explain the
accounting equation.
5. Analyze the effects of 17, 18 12, 13, 14 5, 8, 9, 5, 7, 8, 6, 7, 8, 9,
business transactions 10, 11, 11 10, 11
on the accounting 12, 13
equation.
6. Prepare financial 19, 20 14, 15, 16 9, 14, 15, 6, 7, 8, 9, 2, 5, 7, 11
statements. 17, 18 16, 17 10, 11
,ASSIGNMENT CHARACTERISTICS TABLE
Problem Difficult Time
Number Description y Level Allotted (min.)
1A Identify users and uses of accounting information. Simple 15-20
2A Determine forms of business organization and Simple 15-20
types of accounting standards.
3A Determine missing items. Complex 20-25
4A Classify accounts and prepare accounting Simple 20-30
equation.
5A Assess accounting treatment. Moderate 20-25
6A Analyze transactions and calculate owner’s equity. Simple 35-45
7A Analyze transactions and prepare balance sheet. Simple 40-50
8A Analyze transactions and prepare financial Moderate 40-50
statements.
9A Prepare financial statements. Simple 35-45
10A Determine missing amounts, and comment. Moderate 35-45
11A Discuss errors and prepare corrected balance Moderate 45-55
sheet.
1B Identify users and uses of accounting information. Simple 15-20
2B Determine forms of business organization and Simple 15-20
types of accounting standards.
3B Determine missing items. Complex 20-25
4B Classify accounts and prepare accounting Simple 20-30
equation.
5B Assess accounting treatment. Moderate 20-25
6B Analyze transactions and calculate owner’s equity. Simple 35-45
7B Analyze transactions and prepare balance sheet. Simple 40-50
8B Analyze transactions and prepare financial Moderate 40-50
statements.
9B Prepare financial statements. Simple 35-45
10B Determine missing amounts, and comment. Moderate 35-45
11B Discuss errors and prepare corrected balance Moderate 45-55
sheet.
,BLOOM‘S TAXONOMY TABLE
Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-
of- Chapter Material
Evaluat
Learning Objective Knowledge Comprehension Application Analysis Synthesis ion
1. Identify the use and Q1.3 Q1.1 P1.1A
users of accounting BE1.1 Q1.2 P1.1B
and the objective of E1.5 E1.1
financial reporting. E1.2
2. Compare the Q1.4 P1.2A
different forms of BE1.2 P1.2B
business BE1.4 P1.11B
organization. BE1.10
E1.3
E1.7
3. Explain the building Q1.6 Q1.5 P1.2A BE1.3
blocks of accounting: Q1.7 Q1.8 P1.2B
ethics and the E1.5 Q1.9 P1.3A
concepts included in Q1.10 P1.3B
the conceptual Q1.11 P1.7A
framework. BE1.4 P1.7B
BE1.5 P1.11A
BE1.6 P1.11B
E1.3
E1.4
E1.9
E1.10
P1.5A
P1.5B
4. Describe the Q1.12 BE1.7 BE1.8
components of the Q1.13 BE1.9
financial statements Q1.14 BE1.10
and explain the Q1.16 BE1.14
accounting equation. BE1.11 BE1.15
E1.6
E1.7
E1.13
P1.4A
P1.4B
P1.6A
P1.6B
P1.7A
P1.7B
P1.8A
P1.8B
P1.11A
P1.11B
,BLOOM‘S TAXONOMY TABLE (Continued)
Evaluat
Learning Objective Knowledge Comprehension Applicatio Analysis Synthesis ion
5. Analyze the effects Q1.19 Q1.17 Q1.18
n
of business E1.5 Q1.20 BE1.12
transactions on the E1.8 BE1.13
accounting equation. E1.9 BE1.14
E1.10 E1.12
E1.11 E1.13
P1.5A P1.7A
P1.5B P1.7B
P1.8A
P1.8B
P1.11A
6. Prepare financial Q1.19 P1.11B
BE1.15 P1.10A
statements. Q1.20 BE1.16 P1.10B
E1.9 BE1.17
BE1.18
E1.14
E1.15
E1.16
E1.17
P1.6A
P1.6B
P1.7A
P1.7B
P1.8A
P1.8B
P1.9A
P1.9B
P1.11A
P1.11B
Broadening Your BYP1.1 Santé Saga BYP1.3 BYP1.4 BYP1.2
Perspective BYP1. 6 BYP1.5
, ANSWERS TO QUESTIONS
1. Yes. Accounting is the financial information system that provides useful
financial information to every person who owns and uses economic
resources or otherwise engages in economic activity.
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
2. Internal users are those who plan, organize, and run businesses and
include managers, supervisors, directors, and company officers. External
users work for other organizations but have reasons to be interested in the
company’s financial position and performance, and include current or
potential investors (owners), and creditors.
Internal users may want answers to several types of questions. For
example, the finance department wants to know if there is enough cash to
pay the bills. The marketing department wants to know what price
the business should use in selling its products to maximize profits. The
human resources department wants to know how many people the
business can afford to hire. The production department wants to know
which product lines make the business the most profit.
External users may want answers to several types of questions. For
example, investors want to know if the company is earning enough to give
them a return on their investment. Creditors want to know if the
company is able to pay its debts as they come due. Labour unions want
to know whether the owners can afford to pay increased wages and
benefits. Customers are interested in whether a company will continue to
honour its product warranties and support its product lines. Taxing
authorities want to know whether the company respects the tax laws.
Regulatory agencies want to know whether the company is respecting
established rules.
LO 1 BT: C Difficulty: M Time: 15 min. AACSB: None CPA: cpa-t001 CM: Reporting
3. The main objective of financial reporting is to provide useful information
to investors and creditors (external users) to make decisions about a
business. Users may be potential investors who need to decide if they
wish to invest in the business or they may be creditors deciding if they
wish to lend money to the business. These users want to know if the
business is running successfully and can generate cash and earn a profit.
Accounting Principles, 9th Canadian Edition
Volume 1 & 2
By Jerry Weygandt, Donald Kieso,
Accounting Principles, 9th Canadian Edition
, TABLE OF CONTENTS
Volume 1
1. Accounting in Action
2. The Recording Process
3. Adjusting the Accounts
4. Completion of the Accounting Cycle
5. Accounting for Merchandising Operations
6. Inventory Costing
7. Internal Control and Cash
8. Accounting for Receivables
9. Long-Lived Assets
10. Current Liabilities and Payroll
Volume 2
9. Long-Lived Assets
10. Current Liabilities and Payroll
11. Financial Reporting Concepts
12. Accounting for Partnerships
13. Introduction to Corporations
14. Corporations: Additional Topics and IFRS
15. Non-Current Liabilities
16. Investments
17. The Cash Flow Statement
18. Financial Statement Analysis
CHAPTER 1
, Accounting in Action
Learning Objectives
1. Identify the use and users of accounting and the objective of
financial reporting.
2. Compare the different forms of business organization.
3. Explain the building blocks of accounting: ethics and the
concepts included in the conceptual framework.
4. Describe the components of the financial statements and
explain the accounting equation.
5. Analyze the effects of business transactions on the
accounting equation.
6. Prepare financial statements.
,Summary of Questions by Learning Objectives and Bloom‘s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Questions
1. 1 C 5. 3 C 9. 3 C 13. 4 K 17. 5 C
2. 1 C 6. 3 K 10. 3 C 14. 4 K 18. 5 AP
3. 1 C 7. 3 K 11. 3 C 15. 4 C 19. 6 K
4. 2 K 8. 3 C 12. 4 K 16. 4 K 20. 6 C
Brief Exercises
1. 1 K 5. 3 C 9. 4 AP 13. 5 AP 17. 6 AP
2. 2 C 6. 3 C 10. 4 AP 14. 4,5 AP 18. 6 AP
3. 3 AN 7. 4 C 11. 4 K 15. 4,6 AP
4. 3 C 8. 4 AP 12. 5 AP 16. 6 AP
Exercises
1. 1 C 5. 1,3,5 K 9. 3,5,6 C 13. 4,5 AP 17. 6 AP
2. 1 C 6. 4 AP 10. 5 C 14. 6 AP
3. 2 C 7. 4 AP 11. 5 C 15. 6 AP
4. 3 C 8. 5 C 12. 4,5 AP 16. 6 AP
Problems
1. 1 S 4. 4 AP 7. 3 ,4,5,6 AP 10. 6 AN
2. 2,3 AP 5. 3,5 C 8. 4,5,6 AP 11. 3,4,5,6 AP
3. 4 AP 6. 4,6 AP 9. 6 AP
,Legend: The following abbreviations will appear throughout the
solutions manual file.
LO Learning objective
Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes
AACSB Association to Advance Collegiate Schools of Business
Communication Communication
Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
, ASSIGNMENT CLASSIFICATION TABLE
Brief Problems Problems
Learning Objectives Questions Exercises Exercises Set A Set B
1. Identify the use and 1, 2, 3 1 1, 2, 5 1 1
users of accounting
and the objective of
financial reporting.
2. Compare the different 4 2 3, 2 2
forms of business
organization.
3. Explain the building 5, 6, 7, 8, 3, 4, 5, 6 3, 4, 5, 9, 2, 5, 7, 2, 5, 7, 11
blocks of accounting: 9, 10, 11 10 11
ethics and the
concepts included in
the conceptual
framework.
4. Describe the 12, 13, 14. 7, 8, 9, 6, 7, 13 3, 4, 6, 7, 3, 4, 6, 7,
components of the 15, 16 10, 11, 15 8, 11 8, 11
financial statements
and explain the
accounting equation.
5. Analyze the effects of 17, 18 12, 13, 14 5, 8, 9, 5, 7, 8, 6, 7, 8, 9,
business transactions 10, 11, 11 10, 11
on the accounting 12, 13
equation.
6. Prepare financial 19, 20 14, 15, 16 9, 14, 15, 6, 7, 8, 9, 2, 5, 7, 11
statements. 17, 18 16, 17 10, 11
,ASSIGNMENT CHARACTERISTICS TABLE
Problem Difficult Time
Number Description y Level Allotted (min.)
1A Identify users and uses of accounting information. Simple 15-20
2A Determine forms of business organization and Simple 15-20
types of accounting standards.
3A Determine missing items. Complex 20-25
4A Classify accounts and prepare accounting Simple 20-30
equation.
5A Assess accounting treatment. Moderate 20-25
6A Analyze transactions and calculate owner’s equity. Simple 35-45
7A Analyze transactions and prepare balance sheet. Simple 40-50
8A Analyze transactions and prepare financial Moderate 40-50
statements.
9A Prepare financial statements. Simple 35-45
10A Determine missing amounts, and comment. Moderate 35-45
11A Discuss errors and prepare corrected balance Moderate 45-55
sheet.
1B Identify users and uses of accounting information. Simple 15-20
2B Determine forms of business organization and Simple 15-20
types of accounting standards.
3B Determine missing items. Complex 20-25
4B Classify accounts and prepare accounting Simple 20-30
equation.
5B Assess accounting treatment. Moderate 20-25
6B Analyze transactions and calculate owner’s equity. Simple 35-45
7B Analyze transactions and prepare balance sheet. Simple 40-50
8B Analyze transactions and prepare financial Moderate 40-50
statements.
9B Prepare financial statements. Simple 35-45
10B Determine missing amounts, and comment. Moderate 35-45
11B Discuss errors and prepare corrected balance Moderate 45-55
sheet.
,BLOOM‘S TAXONOMY TABLE
Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-
of- Chapter Material
Evaluat
Learning Objective Knowledge Comprehension Application Analysis Synthesis ion
1. Identify the use and Q1.3 Q1.1 P1.1A
users of accounting BE1.1 Q1.2 P1.1B
and the objective of E1.5 E1.1
financial reporting. E1.2
2. Compare the Q1.4 P1.2A
different forms of BE1.2 P1.2B
business BE1.4 P1.11B
organization. BE1.10
E1.3
E1.7
3. Explain the building Q1.6 Q1.5 P1.2A BE1.3
blocks of accounting: Q1.7 Q1.8 P1.2B
ethics and the E1.5 Q1.9 P1.3A
concepts included in Q1.10 P1.3B
the conceptual Q1.11 P1.7A
framework. BE1.4 P1.7B
BE1.5 P1.11A
BE1.6 P1.11B
E1.3
E1.4
E1.9
E1.10
P1.5A
P1.5B
4. Describe the Q1.12 BE1.7 BE1.8
components of the Q1.13 BE1.9
financial statements Q1.14 BE1.10
and explain the Q1.16 BE1.14
accounting equation. BE1.11 BE1.15
E1.6
E1.7
E1.13
P1.4A
P1.4B
P1.6A
P1.6B
P1.7A
P1.7B
P1.8A
P1.8B
P1.11A
P1.11B
,BLOOM‘S TAXONOMY TABLE (Continued)
Evaluat
Learning Objective Knowledge Comprehension Applicatio Analysis Synthesis ion
5. Analyze the effects Q1.19 Q1.17 Q1.18
n
of business E1.5 Q1.20 BE1.12
transactions on the E1.8 BE1.13
accounting equation. E1.9 BE1.14
E1.10 E1.12
E1.11 E1.13
P1.5A P1.7A
P1.5B P1.7B
P1.8A
P1.8B
P1.11A
6. Prepare financial Q1.19 P1.11B
BE1.15 P1.10A
statements. Q1.20 BE1.16 P1.10B
E1.9 BE1.17
BE1.18
E1.14
E1.15
E1.16
E1.17
P1.6A
P1.6B
P1.7A
P1.7B
P1.8A
P1.8B
P1.9A
P1.9B
P1.11A
P1.11B
Broadening Your BYP1.1 Santé Saga BYP1.3 BYP1.4 BYP1.2
Perspective BYP1. 6 BYP1.5
, ANSWERS TO QUESTIONS
1. Yes. Accounting is the financial information system that provides useful
financial information to every person who owns and uses economic
resources or otherwise engages in economic activity.
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
2. Internal users are those who plan, organize, and run businesses and
include managers, supervisors, directors, and company officers. External
users work for other organizations but have reasons to be interested in the
company’s financial position and performance, and include current or
potential investors (owners), and creditors.
Internal users may want answers to several types of questions. For
example, the finance department wants to know if there is enough cash to
pay the bills. The marketing department wants to know what price
the business should use in selling its products to maximize profits. The
human resources department wants to know how many people the
business can afford to hire. The production department wants to know
which product lines make the business the most profit.
External users may want answers to several types of questions. For
example, investors want to know if the company is earning enough to give
them a return on their investment. Creditors want to know if the
company is able to pay its debts as they come due. Labour unions want
to know whether the owners can afford to pay increased wages and
benefits. Customers are interested in whether a company will continue to
honour its product warranties and support its product lines. Taxing
authorities want to know whether the company respects the tax laws.
Regulatory agencies want to know whether the company is respecting
established rules.
LO 1 BT: C Difficulty: M Time: 15 min. AACSB: None CPA: cpa-t001 CM: Reporting
3. The main objective of financial reporting is to provide useful information
to investors and creditors (external users) to make decisions about a
business. Users may be potential investors who need to decide if they
wish to invest in the business or they may be creditors deciding if they
wish to lend money to the business. These users want to know if the
business is running successfully and can generate cash and earn a profit.
