Solution Manual For Financial Accounting, 11th Edition by Jerry J. Weygandt, Paul D. Kimmel, Verified Chapters 1 - 13, Complete Newest Version

SOLUTION MANUAL g




Financial Accounting 11th Edition
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by Jerry J. Weygandt, Paul D. Kimmel Chapters
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g - 13 | Complete
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,TABLEOFCONTENTS
Chapter 1. Accounting in Action
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g Chapter 2. The Recording Process
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g Chapter3.Adjustingthe Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations
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Chapter 6. Inventories
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Chapter 7.Fraud,Internal Control and Cash
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Chapter 8. Accounting for Receivables
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Chapter9.PlantAssets,NaturalResourcesandIntangibleAssets
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g Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq ui
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Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER1
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Accounting in Action g g




ASSIGNMENT CLASSIFICATION TABLE g g




Brief Exercig A
Learning Objectives
g Questions ses Do It!
g Exercises Problems

1. 1, 2, 3, 4, 5
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Identify the activities and
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users associated with
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acco unting.
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2. Explain the building blocks of
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accog unting: ethics, g g


principles,and as sumptions.
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3. 11, 12, 13, 14.
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State the accounting eq
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g uation, and define itsco
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g mponents.

4. 15, 16, 18
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g g g 4 6, 7, 8
g g 1A, 2A, 4A,
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Analyze the effects of busines
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s
g transactions g on g


theaccountin g equation.
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5. 17, 19, 20, 21,
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g g g 2A, 3A, 4A,
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Describe the four financial stat
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12, 13, 14, 15,
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g ements and how they areprep
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16, 17, 18
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g ared.

, ANSWERS TOQUESTIONS g g




1. True. Virtually every organization and person in our society uses accounting information. Businesses,
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inve stors, creditors, government agencies, and not-for-
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profit organizations must use accounting information to operate effectively.
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LO g 1, g BT: g K, g Difficulty: g Easy, g TOT: g 2 g min., g AACSB: g None, g AICPA g FC: g Reporting, g IMA: g Reporting


2. Accounting is the process of identifying, recording, and communicating the economic events of an
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organ ization to interested users of the information. The first activity of the accounting process is to
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identify eco nomic events that are relevant to a particular business. Once identified and measured, the
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events are rec orded to provide a history of the financial activities of the organization. Recording
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consists of keeping a c hronological diary of these measured events in anorderly and systematic
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manner. The information is com municated through the preparation and distribution of accounting
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greports, the most common of whic h are called financial statements.A vital element in the
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communication process is the accountant’s ability and responsibility to analyze and interpret the
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reported information.
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LO g 1, g BT: g K, g Difficulty: g Easy, g TOT: g 2 g min., g AACSB: g None, g AICPA g FC: g Reporting, g IMA: g Reporting


3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and
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other decision makers.g g g


(b) To assist management, accounting provides internal reports. Examples include financial
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comparison s of operating alternatives, projections of income from new sales campaigns,and
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forecasts of cash needs for the next year.
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LO g 1, g BT: g K, g Difficulty: g Easy, g TOT: g 2 g min., g AACSB: g None, g AICPA g FC: g Reporting, g IMA: g Reporting


4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors2use accounting information to evaluate the risks of granting credit or lending money. g g g g g g g g g g g g


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


5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part
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gof the entire accounting process. Accounting, on the other hand, involves the entire process of
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gidentifying
, recording, and communicating economic events.
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LO g 1, g BT: g C, g Difficulty: g Easy, g TOT: g 2 g min., g AACSB: g None, g AICPA2 gFC: g Reporting, g IMA: g Reporting


6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This
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is true not only at the time the land is purchased, but also over the time the land is held. In determining
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whi ch measurement principle to use (historical cost or fair value) companies weigh the factual nature
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of cost figures versus the relevance of fair value. In general, companies use historical cost. Only in
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situations whe re assets are actively traded do companies apply the fair value principle.
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LO g 2, g BT: g C, g Difficulty: g Easy, g TOT: g 2 g min., g AACSB: g None, g AICPA g FC: g Measurement, g Analysis g and g Interpretation g IMA: g Reporting


7. The monetary unit assumption requires that only transaction data capable of being expressed in terms
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of money be included in the accounting records. This assumption enables accounting to quantify
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(measure) economic events.
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LO g 2, g BT: g K, g Difficulty: g Easy, g TOT: g 2 g min., g AACSB: g None, g AICPA g FC: g Measurement, g Analysis g and g Interpretation g IMA:Reporting