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

SOLUTION MANUAL x




Financial Accounting 11th Edition
x x x




by Jerry J. Weygandt, Paul D. Kimmel Chapters 1
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- 13 | Complete
x x x

,TABLEOFCONTENTS
Chapter 1. Accounting in Action Chapter
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2. The Recording Process Chapter3.Adju
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stingthe Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations Cha
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pter 6. Inventories
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Chapter7.Fraud,InternalControl andCash Chap
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ter 8. Accounting for Receivables
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Chapter9.PlantAssets,NaturalResourcesandIntangibleAssets C
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hapter 10. Liabilities x x




Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq uit
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Chapter12. Statementof Cash Flows x x x x x




Chapter13. Financial Analysis: The Big Picture
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,CHAPTER1
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Accounting in Action x x




ASSIGNMENT CLASSIFICATION TABLE x x




Brief Exerci x A
Learning Objectives
x Questions ses Do It!
x Exercises Problems

1. 1, 2, 3, 4, 5
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Identify the activities and
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users associated with acco
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unting.

2. Explain the building blocks of acco
x x x x x x x 6, 7, 8, 9, 10
x x x x 2 3, 4x


unting: ethics, principles,and as
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sumptions.

3. 11, 12, 13, 14.
x x x 1, 2, 3, 4, 5
x x x x 3 5
State the accounting eq
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uation, and define itsco
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mponents.

4. 15, 16, 18
x x 6, 7, 8, 9
x x x 4 6, 7, 8
x x 1A, 2A, 4A,
x x


Analyze the effects of busines
x x x x x 5A
s transactions on theaccountin
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g equation.
x



5. 17, 19, 20, 21,
x x x 10, 11x 5 8, 9, 10, 11,
x x x 2A, 3A, 4A,
x x

Describe the four financial stat e
x x x x x
12, 13, 14, 15,
x x x 5A
ments and how they areprep are
x x x x x
16, 17, 18
x x

d.

, ANSWERSTOQUESTIONS x x




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


2. Accounting is the process of identifying, recording, and communicating the economic events of an organ iza
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tion to interested users of the information. The first activity of the accounting process is to identify eco nomi
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c events that are relevant to a particular business. Once identified and measured, the events are rec orded t
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o provide a history of the financial activities of the organization. Recording consists of keeping a c hronologic
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al diary of these measured events in anorderly and systematic manner. The information is com municated th
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rough the preparation and distribution of accounting reports, the most common of whic h are called fina
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ncial statements.A vital element in the communication process is the accountant’s ability and responsibility
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to analyze and interpret the reported information.
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LOx 1,x BT:x K,x Difficulty:x Easy,x TOT:x 2x min.,x AACSB:x None,x AICPAx FC:x Reporting,x IMA:x Reporting


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


(b) To assist management, accounting provides internal reports. Examples include financial comparison s
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of operating alternatives, projections of income from new sales campaigns,and forecasts of cash nee
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ds for the next year. x x x x


LOx 1,x BT:x K,x Difficulty:x Easy,x TOT:x 2x min.,x AACSB:x None,x AICPAx FC:x Reporting,x IMA:x 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. x x x x x x x x x x x x


LOx 1,x BT:x K,x Difficulty:x Easy,x TOT:x 2x min.,x AACSB:x None,x AICPAx FC:x Reporting,x IMA:x Reporting


5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part of t
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he entire accounting process. Accounting, on the other hand, involves the entire process of identifying
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, recording, and communicating economic events.
x x x x x


LOx 1,x BT:x C,x Difficulty:x Easy,x TOT:x 2x min.,x AACSB:x None,x AICPA2xFC:x Reporting,x IMA:x Reporting


6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This is tru
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e not only at the time the land is purchased, but also over the time the land is held. In determining whi ch me
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asurement principle to use (historical cost or fair value) companies weigh the factual nature of cost figures v
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ersus the relevance of fair value. In general, companies use historical cost. Only in situations whe re assets ar
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e actively traded do companies apply the fair value principle.
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LOx 2,x BT:x C,x Difficulty:x Easy,x TOT:x 2x min.,x AACSB:x None,x AICPAx FC:x Measurement,x Analysisx andx Interpretationx IMA:x Reporting


7. The monetary unit assumption requires that only transaction data capable of being expressed in terms of m
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oney be included in the accounting records. This assumption enables accounting to quantify (measure) eco
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nomic events. x


LOx 2,x BT:x K,x Difficulty:x Easy,x TOT:x 2x min.,x AACSB:x None,x AICPAx FC:x Measurement,x Analysisx andx Interpretationx IMA:Reporting