SOLUTION MANUAL n
Financial Accounting 11th Edition
n n n
by Jerry J. Weygandt, Paul D. Kimmel
n n n n n n
n Chapters 1 - 13 | Complete
n n n n n
,TABLE OF CONTENTS n n
Chapter 1. Accounting in Action
n n n n
Chapter 2. The Recording Process
n n n n
Chapter 3. Adjusting the Accounts
n n n n
Chapter 4. Completing the Accounting Cycle
n n n n n
Chapter 5. Accounting for Merchandising Operations
n n n n n
Chapter 6. Inventories
n n
Chapter 7. Fraud, Internal Control and Cash
n n n n n n
Chapter 8. Accounting for Receivables
n n n n
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
n n n n n n n n
Chapter 10. Liabilities
n n
Chapter 11. Corporations: Organisations, Stock Transactions and
n n n n n n
n Stockholders’ Equity
n
Chapter 12. Statement of Cash Flows
n n n n n
Chapter 13. Financial Analysis: The Big Picture
n n n n n n n
,CHAPTER 1 n
Accounting in Action n n
ASSIGNMENT CLASSIFICATION TABLE
n n
Brief A
Learning nObjectives Questions n Exercises Do nIt! Exercises Problems
1. Identify nthe nactivities 1, n2, n3, n4, n5 1 1, n2
nandn
users nassociated
nwith naccounting.
2. nExplain nthe nbuilding nblocks 6, n7, n8, n9, n10 2 3, n4
nof naccounting: nethics,
nprinciples,n
and nassumptions.
3. State nthe naccounting 11, n12, n13, n14. 1, n2, n3, n4, n5 3 5
nequation, n and ndefine 22
nitsncomponents.
4. Analyze nthe neffects nof 15, n16, n18 6, n7, n8, n9 4 6, n7, n8 1A, n2A, n4A,
nbusiness ntransactions non 5A
nthen
accounting nequation.
5. Describe nthe nfour nfinancial 17, n19, n20, n21, 10, n11 5 8, n9, n10, n11, 2A, n3A, n4A,
nstatements nand nhow nthey
12, n13, n14, n15, 5A
n arenprepared.
16, n17, n18
, ANSWERS TO QUESTIONS n n
1. True. nVirtually nevery norganization nand nperson nin nour nsociety nuses naccounting ninformation.
nBusinesses, ninvestors, ncreditors, ngovernment nagencies, nand nnot-for-profit norganizations nmust
nuse naccounting ninformation n to noperate neffectively.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
2. Accounting nis nthe nprocess nof nidentifying, nrecording, nand n communicating n the neconomic
nevents nof nan norganization nto ninterested nusers nof nthe ninformation. nThe nfirst nactivity nof nthe
naccounting nprocess nis nto nidentify neconomic nevents nthat nare nrelevant nto na nparticular
nbusiness. nOnce nidentified nand nmeasured, nthe nevents nare nrecorded nto nprovide na nhistory nof
nthe nfinancial nactivities nof nthe norganization. nRecording n consists nof nkeeping na nchronological
ndiary nof nthese nmeasured nevents nin nan n orderly nand nsystematic nmanner. nThe ninformation nis
ncommunicated nthrough nthe npreparation nand ndistribution nof naccounting n reports, n the
n most n common n of n which nare n called nfinancial nstatements. n
A nvital nelement nin nthe
ncommunication nprocess nis nthe naccountant’s nability nand nresponsibility nto nanalyze nand
n interpret nthe n reported n information.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
3. (a) nInternal nusers nare nthose nwho nplan, norganize, nand nrun nthe nbusiness nand ntherefore nare
nofficers nand n other ndecision nmakers.
(b) To nassist nmanagement, naccounting nprovides ninternal nreports. nExamples ninclude
nfinancial ncomparisons nof noperating nalternatives, nprojections nof n income nfrom nnew
nsales n campaigns,n and nforecasts nof n cash nneeds nfor nthe nnext nyear.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
4. (a) Investors n(owners) nuse naccounting ninformation nto nmake ndecisions nto nbuy, nhold, nor nsell
nstock.
(b) Creditors nuse naccounting ninformation nto nevaluate nthe nrisks nof ngranting ncredit nor nlending nmoney.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
5. False. nBookkeeping nusually ninvolves nonly nthe nrecording nof neconomic nevents nand ntherefore
nis njust none npart nof nthe nentire naccounting nprocess. nAccounting, non nthe nother nhand, ninvolves
nthe nentire nprocess nof n identifying, n recording, nand n communicating neconomic nevents.
LO n 1, n BT: n C, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
6. Harper nTravel nAgency nshould nreport nthe nland nat n$85,000 non nits nDecember n31, n 2022
n balance nsheet. nThis nis ntrue nnot nonly nat nthe ntime nthe nland nis npurchased, nbut nalso nover nthe
ntime nthe nland nis nheld. nIn ndetermining nwhich nmeasurement nprinciple nto nuse n(historical ncost
nor nfair nvalue) n companies nweigh nthe n factual nnature nof ncost nfigures nversus nthe nrelevance nof
nfair nvalue. nIn ngeneral, ncompanies nuse nhistorical n cost. nOnly nin nsituations n where nassets nare
nactively ntraded ndo n companies napply nthe nfair n value nprinciple.
LO n 2, n BT: n C, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Measurement, n Analysis
n and n Interpretation n IMA: nReporting
7. The nmonetary nunit nassumption nrequires nthat nonly ntransaction ndata ncapable nof nbeing
nexpressed nin nterms nof nmoney nbe nincluded nin nthe naccounting nrecords. nThis nassumption
Financial Accounting 11th Edition
n n n
by Jerry J. Weygandt, Paul D. Kimmel
n n n n n n
n Chapters 1 - 13 | Complete
n n n n n
,TABLE OF CONTENTS n n
Chapter 1. Accounting in Action
n n n n
Chapter 2. The Recording Process
n n n n
Chapter 3. Adjusting the Accounts
n n n n
Chapter 4. Completing the Accounting Cycle
n n n n n
Chapter 5. Accounting for Merchandising Operations
n n n n n
Chapter 6. Inventories
n n
Chapter 7. Fraud, Internal Control and Cash
n n n n n n
Chapter 8. Accounting for Receivables
n n n n
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
n n n n n n n n
Chapter 10. Liabilities
n n
Chapter 11. Corporations: Organisations, Stock Transactions and
n n n n n n
n Stockholders’ Equity
n
Chapter 12. Statement of Cash Flows
n n n n n
Chapter 13. Financial Analysis: The Big Picture
n n n n n n n
,CHAPTER 1 n
Accounting in Action n n
ASSIGNMENT CLASSIFICATION TABLE
n n
Brief A
Learning nObjectives Questions n Exercises Do nIt! Exercises Problems
1. Identify nthe nactivities 1, n2, n3, n4, n5 1 1, n2
nandn
users nassociated
nwith naccounting.
2. nExplain nthe nbuilding nblocks 6, n7, n8, n9, n10 2 3, n4
nof naccounting: nethics,
nprinciples,n
and nassumptions.
3. State nthe naccounting 11, n12, n13, n14. 1, n2, n3, n4, n5 3 5
nequation, n and ndefine 22
nitsncomponents.
4. Analyze nthe neffects nof 15, n16, n18 6, n7, n8, n9 4 6, n7, n8 1A, n2A, n4A,
nbusiness ntransactions non 5A
nthen
accounting nequation.
5. Describe nthe nfour nfinancial 17, n19, n20, n21, 10, n11 5 8, n9, n10, n11, 2A, n3A, n4A,
nstatements nand nhow nthey
12, n13, n14, n15, 5A
n arenprepared.
16, n17, n18
, ANSWERS TO QUESTIONS n n
1. True. nVirtually nevery norganization nand nperson nin nour nsociety nuses naccounting ninformation.
nBusinesses, ninvestors, ncreditors, ngovernment nagencies, nand nnot-for-profit norganizations nmust
nuse naccounting ninformation n to noperate neffectively.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
2. Accounting nis nthe nprocess nof nidentifying, nrecording, nand n communicating n the neconomic
nevents nof nan norganization nto ninterested nusers nof nthe ninformation. nThe nfirst nactivity nof nthe
naccounting nprocess nis nto nidentify neconomic nevents nthat nare nrelevant nto na nparticular
nbusiness. nOnce nidentified nand nmeasured, nthe nevents nare nrecorded nto nprovide na nhistory nof
nthe nfinancial nactivities nof nthe norganization. nRecording n consists nof nkeeping na nchronological
ndiary nof nthese nmeasured nevents nin nan n orderly nand nsystematic nmanner. nThe ninformation nis
ncommunicated nthrough nthe npreparation nand ndistribution nof naccounting n reports, n the
n most n common n of n which nare n called nfinancial nstatements. n
A nvital nelement nin nthe
ncommunication nprocess nis nthe naccountant’s nability nand nresponsibility nto nanalyze nand
n interpret nthe n reported n information.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
3. (a) nInternal nusers nare nthose nwho nplan, norganize, nand nrun nthe nbusiness nand ntherefore nare
nofficers nand n other ndecision nmakers.
(b) To nassist nmanagement, naccounting nprovides ninternal nreports. nExamples ninclude
nfinancial ncomparisons nof noperating nalternatives, nprojections nof n income nfrom nnew
nsales n campaigns,n and nforecasts nof n cash nneeds nfor nthe nnext nyear.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
4. (a) Investors n(owners) nuse naccounting ninformation nto nmake ndecisions nto nbuy, nhold, nor nsell
nstock.
(b) Creditors nuse naccounting ninformation nto nevaluate nthe nrisks nof ngranting ncredit nor nlending nmoney.
LO n 1, n BT: n K, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
5. False. nBookkeeping nusually ninvolves nonly nthe nrecording nof neconomic nevents nand ntherefore
nis njust none npart nof nthe nentire naccounting nprocess. nAccounting, non nthe nother nhand, ninvolves
nthe nentire nprocess nof n identifying, n recording, nand n communicating neconomic nevents.
LO n 1, n BT: n C, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Reporting, n IMA: n Reporting
6. Harper nTravel nAgency nshould nreport nthe nland nat n$85,000 non nits nDecember n31, n 2022
n balance nsheet. nThis nis ntrue nnot nonly nat nthe ntime nthe nland nis npurchased, nbut nalso nover nthe
ntime nthe nland nis nheld. nIn ndetermining nwhich nmeasurement nprinciple nto nuse n(historical ncost
nor nfair nvalue) n companies nweigh nthe n factual nnature nof ncost nfigures nversus nthe nrelevance nof
nfair nvalue. nIn ngeneral, ncompanies nuse nhistorical n cost. nOnly nin nsituations n where nassets nare
nactively ntraded ndo n companies napply nthe nfair n value nprinciple.
LO n 2, n BT: n C, n Difficulty: n Easy, n TOT: n 2 n min., n AACSB: n None, n AICPA n FC: n Measurement, n Analysis
n and n Interpretation n IMA: nReporting
7. The nmonetary nunit nassumption nrequires nthat nonly ntransaction ndata ncapable nof nbeing
nexpressed nin nterms nof nmoney nbe nincluded nin nthe naccounting nrecords. nThis nassumption
