Accounting Principles
13e WEYGANDT,
KIMMEL, KIESO
(Solutions Manual All
Chapters, 100%
Original Verified, A+
Grade)
, CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 22 1, 2, 3, 4, 5, 6, 3 5 1A
equation, and define its
components.
4. Analyze the effects of 14, 15, 16, 18 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
business transactions on the 5A
accounting equation.
5. Describe the four financial 17, 19, 20, 21 10, 11 5 9, 10, 11, 12, 2A, 3A, 4A,
statements and how they are 13, 14, 15, 16, 5A
prepared. 17, 18
*6 Explain the career
Opportunities in accounting.
Copyright © 2018 WILEY Weygandt, Accounting Principles, 13/e, Solutions Manual (For Instructor Use Only) 1-1
,ASSIGNMENT CHARACTERISTICS TABLE
Problem Difficulty Time Allotted
Number Description Level (min.)
1A Analyze transactions and compute net income. Moderate 40–50
2A Analyze transactions and prepare income statement, Moderate 50–60
owner’s equity statement, and balance sheet.
3A Prepare income statement, owner’s equity statement, and Moderate 50–60
balance sheet.
4A Analyze transactions and prepare financial statements. Moderate 40–50
5A Determine financial statement amounts and prepare Moderate 40–50
owner’s equity statement.
1-2 Copyright © 2018 WILEY Weygandt, Accounting Principles, 13/e, Solutions Manual (For Instructor Use Only)
, ANSWERS TO QUESTIONS
1. Yes, this is correct. Virtually every organization and person in our society uses accounting
information. Businesses, investors, creditors, government agencies, and not-for-profit organizations
must use accounting information to operate effectively.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
2. Accounting is the process of identifying, recording, and communicating the economic events of
an organization to interested users of the information. The first step of the accounting process is
therefore to identify economic events that are relevant to a particular business. Once identified
and measured, the events are recorded to provide a history of the financial activities of the
organization. Recording consists of keeping a chronological diary of these measured events in an
orderly and systematic manner. The information is communicated through the preparation and
distribution of accounting reports, the most common of which are called financial statements.
A vital element in the communication process is the accountant’s ability and responsibility to
analyze and interpret the reported information.
LO1 BT: C Difficulty: Easy TOT: 4 min. AACSB: None AICPA FC: Reporting
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers
and other decision makers.
(b) To assist management, managerial accounting provides internal reports. Examples include
financial comparisons of operating alternatives, projections of income from new sales
campaigns, and forecasts of cash needs for the next year.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell owner-
ship shares of a company.
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
5. No, this is incorrect. Bookkeeping usually involves only the recording of economic events and
therefore is just one part of the entire accounting process. Accounting, on the other hand, involves
the entire process of identifying, recording, and communicating economic events.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
6. Benton Travel Agency should report the land at $90,000 on its December 31, 2020 balance
sheet. This is true not only at the time the land is purchased, but also over the time the land is
held. In determining which measurement principle to use (cost or fair value) companies weigh the
factual nature of cost figures versus the relevance of fair value. In general, companies use cost.
Only in situations where assets are actively traded do companies apply the fair value principle.
An important concept that accountants follow is the historical cost principle.
LO2 BT: C Difficulty: Easy TOT: 4 min. AACSB: None AICPA FC: Reporting
7. The monetary unit assumption requires that only transaction data that can be expressed in terms
of money be included in the accounting records. This assumption enables accounting to quantify
(measure) economic events.
LO2 BT: K Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
8. The economic entity assumption requires that the activities of the entity be kept separate and
distinct from the activities of its owners and all other economic entities.
LO2 BT: K Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
Copyright © 2018 WILEY Weygandt, Accounting Principles, 13/e, Solutions Manual (For Instructor Use Only) 1-3
13e WEYGANDT,
KIMMEL, KIESO
(Solutions Manual All
Chapters, 100%
Original Verified, A+
Grade)
, CHAPTER 1
Accounting in Action
ASSIGNMENT CLASSIFICATION TABLE
Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems
1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.
2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.
3. State the accounting 11, 12, 13, 22 1, 2, 3, 4, 5, 6, 3 5 1A
equation, and define its
components.
4. Analyze the effects of 14, 15, 16, 18 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
business transactions on the 5A
accounting equation.
5. Describe the four financial 17, 19, 20, 21 10, 11 5 9, 10, 11, 12, 2A, 3A, 4A,
statements and how they are 13, 14, 15, 16, 5A
prepared. 17, 18
*6 Explain the career
Opportunities in accounting.
Copyright © 2018 WILEY Weygandt, Accounting Principles, 13/e, Solutions Manual (For Instructor Use Only) 1-1
,ASSIGNMENT CHARACTERISTICS TABLE
Problem Difficulty Time Allotted
Number Description Level (min.)
1A Analyze transactions and compute net income. Moderate 40–50
2A Analyze transactions and prepare income statement, Moderate 50–60
owner’s equity statement, and balance sheet.
3A Prepare income statement, owner’s equity statement, and Moderate 50–60
balance sheet.
4A Analyze transactions and prepare financial statements. Moderate 40–50
5A Determine financial statement amounts and prepare Moderate 40–50
owner’s equity statement.
1-2 Copyright © 2018 WILEY Weygandt, Accounting Principles, 13/e, Solutions Manual (For Instructor Use Only)
, ANSWERS TO QUESTIONS
1. Yes, this is correct. Virtually every organization and person in our society uses accounting
information. Businesses, investors, creditors, government agencies, and not-for-profit organizations
must use accounting information to operate effectively.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
2. Accounting is the process of identifying, recording, and communicating the economic events of
an organization to interested users of the information. The first step of the accounting process is
therefore to identify economic events that are relevant to a particular business. Once identified
and measured, the events are recorded to provide a history of the financial activities of the
organization. Recording consists of keeping a chronological diary of these measured events in an
orderly and systematic manner. The information is communicated through the preparation and
distribution of accounting reports, the most common of which are called financial statements.
A vital element in the communication process is the accountant’s ability and responsibility to
analyze and interpret the reported information.
LO1 BT: C Difficulty: Easy TOT: 4 min. AACSB: None AICPA FC: Reporting
3. (a) Internal users are those who plan, organize, and run the business and therefore are officers
and other decision makers.
(b) To assist management, managerial accounting provides internal reports. Examples include
financial comparisons of operating alternatives, projections of income from new sales
campaigns, and forecasts of cash needs for the next year.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell owner-
ship shares of a company.
(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
5. No, this is incorrect. Bookkeeping usually involves only the recording of economic events and
therefore is just one part of the entire accounting process. Accounting, on the other hand, involves
the entire process of identifying, recording, and communicating economic events.
LO1 BT: C Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
6. Benton Travel Agency should report the land at $90,000 on its December 31, 2020 balance
sheet. This is true not only at the time the land is purchased, but also over the time the land is
held. In determining which measurement principle to use (cost or fair value) companies weigh the
factual nature of cost figures versus the relevance of fair value. In general, companies use cost.
Only in situations where assets are actively traded do companies apply the fair value principle.
An important concept that accountants follow is the historical cost principle.
LO2 BT: C Difficulty: Easy TOT: 4 min. AACSB: None AICPA FC: Reporting
7. The monetary unit assumption requires that only transaction data that can be expressed in terms
of money be included in the accounting records. This assumption enables accounting to quantify
(measure) economic events.
LO2 BT: K Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
8. The economic entity assumption requires that the activities of the entity be kept separate and
distinct from the activities of its owners and all other economic entities.
LO2 BT: K Difficulty: Easy TOT: 2 min. AACSB: None AICPA FC: Reporting
Copyright © 2018 WILEY Weygandt, Accounting Principles, 13/e, Solutions Manual (For Instructor Use Only) 1-3
