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

SOLUTION MANUAL l8




Financial Accounting 11th Edition
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by Jerry J. Weygandt, Paul D. Kimmel Chapters
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1 - 13 | Complete
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,TABLEOFCONTENTS
Chapter 1. Accounting in Action Chapte
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r 2. The Recording Process Chapter 3. Adj
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usting the Accounts l8 l8




Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations Ch
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apter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash Cha
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pter 8. Accounting for Receivables
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Chapter9.PlantAssets, NaturalResourcesand Intangible Assets C
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hapter 10. Liabilities l8 l8




Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq ui
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y
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 l8 l8




ASSIGNMENT CLASSIFICATION TABLE l8 l8




Brief Exerci l8 A
Learning Objectives l8 Questions ses Do It!
l8 Exercises Problems

1. 1, 2, 3, 4, 5
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Identify the activities and l8 l8 l8 l


users associated with acc
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o unting.
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2. Explain the building blocks of acc
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o unting: ethics, principles,and
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as sumptions. l8




3. 11, 12, 13, 14.
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State the accounting eq l8 l8 l8 l 22
uation, and define itsc
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o mponents.
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4. 15, 16, 18
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l8 l8 1A, 2A, 4A,
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Analyze the effects of busine l8 l8 l8 l8 5A
s s transactions on theaccount
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in g equation.
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5. 17, 19, 20, 21,
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Describe the four financial stat l8 l8 l8 l8 l8
12, 13, 14, 15,
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ements and how they areprep a l8 l8 l8 l8 l8
16, 17, 18
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red.

, ANSWERS TO QUESTIONS l8 l8




1. True. Virtually every organization and person in our society uses accounting information. Businesses, inv
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e stors, creditors, government agencies, and not-for-
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profit organizations must use accounting information to operate effectively.
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LOl 8 1,l 8 BT:l 8 K,l 8 Difficulty:l 8 Easy,l 8 TOT:l 8 2l 8 min.,l 8 AACSB:l 8 None,l 8 AICPAl 8 FC:l 8 Reporting,l 8 IMA:l 8 Reporting


2. Accounting is the process of identifying, recording, and communicating the economic events of an org
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an ization to interested users of the information. The first activity of the accounting process is to identif
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y eco nomic events that are relevant to a particular business. Once identified and measured, the events
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are rec orded to provide a history of the financial activities of the organization. Recording consists of ke
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eping a c hronological diary of these measured events in anorderly and systematic manner. The informa
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tion is com municated through the preparation and distribution of accounting reports, the most com
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mon of whic h are called financial statements.A vital element in the communication process is the a
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ccountant’s ability and responsibility to analyze and interpret the reported information.
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LOl 8 1,l 8 BT:l 8 K,l 8 Difficulty:l 8 Easy,l 8 TOT:l 8 2l 8 min.,l 8 AACSB:l 8 None,l 8 AICPAl 8 FC:l 8 Reporting,l 8 IMA:l 8 Reporting


3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and othe
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r decision makers. l8 l8


(b) To assist management, accounting provides internal reports. Examples include financial compariso
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n s of operating alternatives, projections of income from new sales campaigns,and forecasts of c
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ash needs for the next year. l8 l8 l8 l8 l8


LOl 8 1,l 8 BT:l 8 K,l 8 Difficulty:l 8 Easy,l 8 TOT:l 8 2l 8 min.,l 8 AACSB:l 8 None,l 8 AICPAl 8 FC:l 8 Reporting,l 8 IMA:l 8 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. l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8 l8


LOl 8 1,l 8 BT:l 8 K,l 8 Difficulty:l 8 Easy,l 8 TOT:l 8 2l 8 min.,l 8 AACSB:l 8 None,l 8 AICPAl 8 FC:l 8 Reporting,l 8 IMA:l 8 Reporting


5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part
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8of the entire accounting process. Accounting, on the other hand, involves the entire process of identifyin
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g
, recording, and communicating economic events.
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LOl 8 1,l 8 BT:l 8 C,l 8 Difficulty:l 8 Easy,l 8 TOT:l 8 2l 8 min.,l 8 AACSB:l 8 None,l 8 AICPA2l8FC:l 8 Reporting,l 8 IMA:l 8 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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8whi ch measurement principle to use (historical cost or fair value) companies weigh the factual nature o
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f cost figures versus the relevance of fair value. In general, companies use historical cost. Only in situati
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ons whe re assets are actively traded do companies apply the fair value principle.
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LOl 8 2,l 8 BT:l 8 C,l 8 Difficulty:l 8 Easy,l 8 TOT:l 8 2l 8 min.,l 8 AACSB:l 8 None,l 8 AICPAl 8 FC:l 8 Measurement,l 8 Analysisl 8 andl 8 Interpretationl 8 IMA:l 8 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 (meas
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ure) economic events. l8 l8


LOl 8 2,l 8 BT:l8 K,l 8 Difficulty:l 8 Easy,l 8 TOT:l8 2l 8 min.,l 8 AACSB:l 8 None,l 8 AICPAl 8 FC:l 8 Measurement,l 8 Analysisl 8 andl 8 Interpretationl 8 IMA:Reporting