SOLUTION MANUAL for Financial Accounting 11th Edition by Jerry J. Weygandt, Paul D. Kimmel All Chapters 1 - 13 | Complete Solutions

SOLUTION MANUAL

FINANCIAL ACCOUNTING 11TH EDITION

BY JERRY J. WEYGANDT, PAUL D. KIMMEL

CHAPTERS 1 - 13 | COMPLETE

,TABLE OF CONTENTS re re




Chapter 1. Accounting in Action
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Chapter 2. The Recording Process
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Chapter 3. Adjusting the 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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Chapter 9. Plant Assets, Natural Resources and Intangible Assets
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Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq
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uity
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER 1
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Accounting in Action re re




ASSIGNMENT CLASSIFICATION TABLE re re




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

1. 1, 2, 3, 4, 5
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Identify the activities and re re re er



users associated with acco
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unting.

2. Explain the building blocks of acco
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unting: ethics, principles,and as
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sumptions.

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

4. 15, 16, 18
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Analyze the effects of busines
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s transactions on theaccountin
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g equation.
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5. 17, 19, 20, 21,
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Describe the four financial stat re re re re
12, 13, 14, 15,
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ements and how they areprep
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16, 17, 18
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ared.

, ANSWERS TO QUESTIONS re re




1. True. Virtually every organization and person in our society uses accounting information. Businesses, inve
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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 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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2. Accounting is the process of identifying, recording, and communicating the economic events of an orga
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nization to interested users of the information. The first activity of the accounting process is to identify ec
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onomic events that are relevant to a particular business. Once identified and measured, the events are re
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corded to provide a history of the financial activities of the organization. Recording consists of keeping a c
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hronological diary of these measured events in anorderly and systematic manner. The information is com
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municated through the preparation and distribution of accounting reports, the most common of
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which are called financial statements.A vital element in the communication process is the accountant’s a
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bility and responsibility to analyze and interpret the reported information.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and other
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decision makers. re



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



LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
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LO 1, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part
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of 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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LO 1, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Reporting, IMA: Reporting
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6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This i
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s true not only at the time the land is purchased, but also over the time the land is held. In determining w
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hich measurement principle to use (historical cost or fair value) companies weigh the factual nature of co
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st figures versus the relevance of fair value. In general, companies use historical cost. Only in situations w
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here assets are actively traded do companies apply the fair value principle.
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LO 2, BT: C, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA: Re
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porting


7. The monetary unit assumption requires that only transaction data capable of being expressed in terms of
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money be included in the accounting records. This assumption enables accounting to quantify (measure)
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economic events. re



LO 2, BT: K, Difficulty: Easy, TOT: 2 min., AACSB: None, AICPA FC: Measurement, Analysis and Interpretation IMA:Reporting
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