Solutions Manual For Accounting Principles 8th Canadian Edition
(Volume 1) Jerry Weygandt, Donald Kieso, Paul Kimmel, Barbara Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
Trenholm, Valerie Warren, Lori Novak
CHAPTER 1 Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Accounting in Action Questions
1. 1 C 5. 3 C 9. 3 C 13. 4 K 17. 5 C
Learning Objectives 2. 1 C 6. 3 K 10. 3 C 14. 4 K 18. 5 AP
3. 1 C 7. 3 K 11. 3 C 15. 4 C 19. 6 K
1. Identify the use and users of accounting and the objective of 4. 2 K 8. 3 C 12. 4 K 16. 4 K 20. 6 C
financial reporting. Brief Exercises
2. Compare the different forms of business organization. 1. 1 K 5. 3 C 9. 4 AP 13. 5 AP 17. 6 AP
3. Explain the building blocks of accounting: ethics and the 2. 2 C 6. 3 C 10. 4 AP 14. 4,5 AP 18. 6 AP
concepts included in the conceptual framework. 3. 3 AN 7. 4 C 11. 4 K 15. 4,6 AP
4. Describe the components of the financial statements and 4. 3 C 8. 4 AP 12. 5 AP 16. 6 AP
explain the accounting equation. Exercises
5. Analyze the effects of business transactions on the 1. 1 C 5. 1,3,5 K 9. 3,5,6 C 13. 4,5 AP 17. 6 AP
accounting equation. 2. 1 C 6. 4 AP 10. 5 C 14. 6 AP
6. Prepare financial statements. 3. 2 C 7. 4 AP 11. 5 C 15. 6 AP
4. 3 C 8. 5 C 12. 4,5 AP 16. 6 AP
Problems
1. 1 S 4. 4 AP 7. 3,4,5,6 AP 10. 6 AN
2. 2,3 AP 5. 3,5 C 8. 4,5,6 AP 11. 3,4,5,6 AP
3. 4 AP 6. 4,6 AP 9. 6 AP
Solutions Manual 1.1 Chapter 1 Solutions Manual 1.2 Chapter 1
. .
,Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
ASSIGNMENT CLASSIFICATION TABLE
Legend: The following abbreviations will appear throughout the
solutions manual file. Brief Problems Problems
Learning Objectives Questions Exercises Exercises Set A Set B
LO Learning objective
Bloom's 1. Identify the use and 1, 2, 3 1 1, 2, 5 1 1
users of accounting
BT Taxonomy and the objective of
K Knowledge financial reporting.
C Comprehension
2. Compare the different 4 2 3, 2 2
AP Application forms of business
AN Analysis organization.
S Synthesis
E Evaluation 3. Explain the building 5, 6, 7, 8, 3, 4, 5, 6 4, 5, 9, 10 2, 5, 7, 2, 5, 7, 11
blocks of accounting: 9, 10, 11 11
Difficulty: Level of difficulty ethics and the
S Simple concepts included in
the conceptual
M Moderate
framework.
C Complex 4. Describe the 12, 13, 14. 7, 8, 9, 6, 7, 13 3, 4, 6, 7, 3, 4, 6, 7,
Time: Estimated time to complete in minutes components of the 15, 16 10, 11, 15 8, 11 8, 11
financial statements
AACSB Association to Advance Collegiate Schools of Business and explain the
Communication Communication accounting equation.
Ethics Ethics 5. Analyze the effects of 17, 18 12, 13, 14 5, 8, 9, 5, 7, 8, 6, 7, 8, 9,
Analytic Analytic business transactions 10, 11, 11 10, 11
Tech. Technology on the accounting 12, 13
equation.
Diversity Diversity
Reflec. Thinking Reflective Thinking 6. Prepare financial 19, 20 14, 15, 16 9, 14, 15, 6, 7, 8, 9, 2, 5, 7, 11
statements. 17, 18 16, 17 10, 11
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
Solutions Manual 1.3 Chapter 1 Solutions Manual 1.4 Chapter 1
. .
,Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
ASSIGNMENT CHARACTERISTICS TABLE BLOOM’S TAXONOMY TABLE
Problem Difficulty Time Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-
Number Description Level Allotted (min.) Chapter Material
1A Identify users and uses of accounting information. Simple 15-20
Evaluat
2A Determine forms of business organization and Simple 15-20 Learning Objective Knowledge Comprehension Application Analysis Synthesis ion
types of accounting standards. 1. Identify the use and Q1.3 Q1.1 P1.1A
3A Determine missing items. Complex 20-25 users of accounting BE1.1 Q1.2 P1.1B
and the objective of E1.5 E1.1
4A Classify accounts and prepare accounting Simple 20-30 financial reporting. E1.2
equation.
5A Assess accounting treatment. Moderate 20-25 2. Compare the Q1.4 P1.2A
different forms of BE1.2 P1.2B
6A Analyze transactions and calculate owner’s equity. Simple 35-45 business BE1.4 P1.11B
organization. BE1.10
7A Analyze transactions and prepare balance sheet. Simple 40-50 E1.3
E1.7
8A Analyze transactions and prepare financial Moderate 40-50
statements. 3. Explain the building Q1.6 Q1.5 P1.2A BE1.3
9A Prepare financial statements. Simple 35-45 blocks of accounting: Q1.7 Q1.8 P1.2B
ethics and the E1.5 Q1.9 P1.3A
concepts included in Q1.10 P1.3B
10A Determine missing amounts, and comment. Moderate 35-45
the conceptual Q1.11 P1.7A
11A Discuss errors and prepare corrected balance Moderate 45-55 framework. BE1.4 P1.7B
BE1.5 P1.11A
sheet.
BE1.6 P1.11B
E1.4
1B Identify users and uses of accounting information. Simple 15-20 E1.9
E1.10
2B Determine forms of business organization and Simple 15-20 P1.5A
types of accounting standards. P1.5B
3B Determine missing items. Complex 20-25
4. Describe the Q1.12 BE1.7 BE1.8
4B Classify accounts and prepare accounting Simple 20-30 components of the Q1.13 BE1.9
equation. financial statements Q1.14 BE1.10
5B Assess accounting treatment. Moderate 20-25 and explain the Q1.16 BE1.14
accounting equation. BE1.11 BE1.15
E1.6
6B Analyze transactions and calculate owner’s equity. Simple 35-45
E1.7
E1.13
7B Analyze transactions and prepare balance sheet. Simple 40-50 P1.4A
P1.4B
8B Analyze transactions and prepare financial Moderate 40-50 P1.6A
statements. P1.6B
9B Prepare financial statements. Simple 35-45 P1.7A
P1.7B
10B Determine missing amounts, and comment. Moderate 35-45 P1.8A
P1.8B
11B Discuss errors and prepare corrected balance Moderate 45-55 P1.11A
sheet. P1.11B
Solutions Manual 1.5 Chapter 1 Solutions Manual 1.6 Chapter 1
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, Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
BLOOM’S TAXONOMY TABLE (Continued) ANSWERS TO QUESTIONS
Evaluat
Learning Objective Knowledge Comprehension Application Analysis Synthesis ion 1. Yes. Accounting is the financial information system that provides useful
5. Analyze the effects Q1.19 Q1.17 Q1.18 financial information to every person who owns and uses economic
of business E1.5 Q1.20 BE1.12
transactions on the E1.8 BE1.13 resources or otherwise engages in economic activity.
accounting equation. E1.9 BE1.14
E1.10 E1.12 LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
E1.11 E1.13
P1.5A P1.7A
P1.5B P1.7B 2. Internal users are those who plan, organize, and run businesses and
P1.8A include managers, supervisors, directors, and company officers. External
P1.8B
P1.11A
users work for other organizations but have reasons to be interested in the
P1.11B company’s financial position and performance, and include current or
6. Prepare financial Q1.19 BE1.15 P1.10A potential investors (owners), and creditors.
statements. Q1.20 BE1.16 P1.10B
E1.9 BE1.17
BE1.18 Internal users may want answers to several types of questions. For
E1.14 example, the finance department wants to know if there is enough cash to
E1.15
E1.16
pay the bills. The marketing department wants to know what price the
E1.17 business should use in selling its products to maximize profits. The human
P1.6A resources department wants to know how many people the business can
P1.6B
P1.7A
afford to hire. The production department wants to know which product
P1.7B lines make the business the most profit.
P1.8A
P1.8B
P1.9A
External users may want answers to several types of questions. For
P1.9B example, investors want to know if the company is earning enough to give
P1.11A them a return on their investment. Creditors want to know if the company
P1.11B
Broadening Your BYP1.1 Santé Saga BYP1.3 BYP1.4 BYP1.2
is able to pay its debts as they come due. Labour unions want to know
Perspective BYP1. 6 BYP1.5 whether the owners can afford to pay increased wages and benefits.
Customers are interested in whether a company will continue to honour its
product warranties and support its product lines. Taxing authorities want to
know whether the company respects the tax laws. Regulatory agencies
want to know whether the company is respecting established rules.
LO 1 BT: C Difficulty: M Time: 15 min. AACSB: None CPA: cpa-t001 CM: Reporting
3. The main objective of financial reporting is to provide useful information to
investors and creditors (external users) to make decisions about a
business. Users may be potential investors who need to decide if they
wish to invest in the business or they may be creditors deciding if they
wish to lend money to the business. These users want to know if the
business is running successfully and can generate cash and earn a profit.
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual 1.7 Chapter 1 Solutions Manual 1.8 Chapter 1
. .
(Volume 1) Jerry Weygandt, Donald Kieso, Paul Kimmel, Barbara Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
Trenholm, Valerie Warren, Lori Novak
CHAPTER 1 Summary of Questions by Learning Objectives and Bloom’s Taxonomy
Item LO BT Item LO BT Item LO BT Item LO BT Item LO BT
Accounting in Action Questions
1. 1 C 5. 3 C 9. 3 C 13. 4 K 17. 5 C
Learning Objectives 2. 1 C 6. 3 K 10. 3 C 14. 4 K 18. 5 AP
3. 1 C 7. 3 K 11. 3 C 15. 4 C 19. 6 K
1. Identify the use and users of accounting and the objective of 4. 2 K 8. 3 C 12. 4 K 16. 4 K 20. 6 C
financial reporting. Brief Exercises
2. Compare the different forms of business organization. 1. 1 K 5. 3 C 9. 4 AP 13. 5 AP 17. 6 AP
3. Explain the building blocks of accounting: ethics and the 2. 2 C 6. 3 C 10. 4 AP 14. 4,5 AP 18. 6 AP
concepts included in the conceptual framework. 3. 3 AN 7. 4 C 11. 4 K 15. 4,6 AP
4. Describe the components of the financial statements and 4. 3 C 8. 4 AP 12. 5 AP 16. 6 AP
explain the accounting equation. Exercises
5. Analyze the effects of business transactions on the 1. 1 C 5. 1,3,5 K 9. 3,5,6 C 13. 4,5 AP 17. 6 AP
accounting equation. 2. 1 C 6. 4 AP 10. 5 C 14. 6 AP
6. Prepare financial statements. 3. 2 C 7. 4 AP 11. 5 C 15. 6 AP
4. 3 C 8. 5 C 12. 4,5 AP 16. 6 AP
Problems
1. 1 S 4. 4 AP 7. 3,4,5,6 AP 10. 6 AN
2. 2,3 AP 5. 3,5 C 8. 4,5,6 AP 11. 3,4,5,6 AP
3. 4 AP 6. 4,6 AP 9. 6 AP
Solutions Manual 1.1 Chapter 1 Solutions Manual 1.2 Chapter 1
. .
,Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
ASSIGNMENT CLASSIFICATION TABLE
Legend: The following abbreviations will appear throughout the
solutions manual file. Brief Problems Problems
Learning Objectives Questions Exercises Exercises Set A Set B
LO Learning objective
Bloom's 1. Identify the use and 1, 2, 3 1 1, 2, 5 1 1
users of accounting
BT Taxonomy and the objective of
K Knowledge financial reporting.
C Comprehension
2. Compare the different 4 2 3, 2 2
AP Application forms of business
AN Analysis organization.
S Synthesis
E Evaluation 3. Explain the building 5, 6, 7, 8, 3, 4, 5, 6 4, 5, 9, 10 2, 5, 7, 2, 5, 7, 11
blocks of accounting: 9, 10, 11 11
Difficulty: Level of difficulty ethics and the
S Simple concepts included in
the conceptual
M Moderate
framework.
C Complex 4. Describe the 12, 13, 14. 7, 8, 9, 6, 7, 13 3, 4, 6, 7, 3, 4, 6, 7,
Time: Estimated time to complete in minutes components of the 15, 16 10, 11, 15 8, 11 8, 11
financial statements
AACSB Association to Advance Collegiate Schools of Business and explain the
Communication Communication accounting equation.
Ethics Ethics 5. Analyze the effects of 17, 18 12, 13, 14 5, 8, 9, 5, 7, 8, 6, 7, 8, 9,
Analytic Analytic business transactions 10, 11, 11 10, 11
Tech. Technology on the accounting 12, 13
equation.
Diversity Diversity
Reflec. Thinking Reflective Thinking 6. Prepare financial 19, 20 14, 15, 16 9, 14, 15, 6, 7, 8, 9, 2, 5, 7, 11
statements. 17, 18 16, 17 10, 11
CPA CM CPA Canada Competency Map
Ethics Professional and Ethical Behaviour
PS and DM Problem-Solving and Decision-Making
Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
Reporting Financial Reporting
Stat. & Gov. Strategy and Governance
Mgt. Accounting Management Accounting
Audit Audit and Assurance
Finance Finance
Tax Taxation
Solutions Manual 1.3 Chapter 1 Solutions Manual 1.4 Chapter 1
. .
,Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
ASSIGNMENT CHARACTERISTICS TABLE BLOOM’S TAXONOMY TABLE
Problem Difficulty Time Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-
Number Description Level Allotted (min.) Chapter Material
1A Identify users and uses of accounting information. Simple 15-20
Evaluat
2A Determine forms of business organization and Simple 15-20 Learning Objective Knowledge Comprehension Application Analysis Synthesis ion
types of accounting standards. 1. Identify the use and Q1.3 Q1.1 P1.1A
3A Determine missing items. Complex 20-25 users of accounting BE1.1 Q1.2 P1.1B
and the objective of E1.5 E1.1
4A Classify accounts and prepare accounting Simple 20-30 financial reporting. E1.2
equation.
5A Assess accounting treatment. Moderate 20-25 2. Compare the Q1.4 P1.2A
different forms of BE1.2 P1.2B
6A Analyze transactions and calculate owner’s equity. Simple 35-45 business BE1.4 P1.11B
organization. BE1.10
7A Analyze transactions and prepare balance sheet. Simple 40-50 E1.3
E1.7
8A Analyze transactions and prepare financial Moderate 40-50
statements. 3. Explain the building Q1.6 Q1.5 P1.2A BE1.3
9A Prepare financial statements. Simple 35-45 blocks of accounting: Q1.7 Q1.8 P1.2B
ethics and the E1.5 Q1.9 P1.3A
concepts included in Q1.10 P1.3B
10A Determine missing amounts, and comment. Moderate 35-45
the conceptual Q1.11 P1.7A
11A Discuss errors and prepare corrected balance Moderate 45-55 framework. BE1.4 P1.7B
BE1.5 P1.11A
sheet.
BE1.6 P1.11B
E1.4
1B Identify users and uses of accounting information. Simple 15-20 E1.9
E1.10
2B Determine forms of business organization and Simple 15-20 P1.5A
types of accounting standards. P1.5B
3B Determine missing items. Complex 20-25
4. Describe the Q1.12 BE1.7 BE1.8
4B Classify accounts and prepare accounting Simple 20-30 components of the Q1.13 BE1.9
equation. financial statements Q1.14 BE1.10
5B Assess accounting treatment. Moderate 20-25 and explain the Q1.16 BE1.14
accounting equation. BE1.11 BE1.15
E1.6
6B Analyze transactions and calculate owner’s equity. Simple 35-45
E1.7
E1.13
7B Analyze transactions and prepare balance sheet. Simple 40-50 P1.4A
P1.4B
8B Analyze transactions and prepare financial Moderate 40-50 P1.6A
statements. P1.6B
9B Prepare financial statements. Simple 35-45 P1.7A
P1.7B
10B Determine missing amounts, and comment. Moderate 35-45 P1.8A
P1.8B
11B Discuss errors and prepare corrected balance Moderate 45-55 P1.11A
sheet. P1.11B
Solutions Manual 1.5 Chapter 1 Solutions Manual 1.6 Chapter 1
. .
, Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition Weygandt, Kieso, Kimmel, Trenholm, Warren, Novak Accounting Principles, Eighth Canadian Edition
BLOOM’S TAXONOMY TABLE (Continued) ANSWERS TO QUESTIONS
Evaluat
Learning Objective Knowledge Comprehension Application Analysis Synthesis ion 1. Yes. Accounting is the financial information system that provides useful
5. Analyze the effects Q1.19 Q1.17 Q1.18 financial information to every person who owns and uses economic
of business E1.5 Q1.20 BE1.12
transactions on the E1.8 BE1.13 resources or otherwise engages in economic activity.
accounting equation. E1.9 BE1.14
E1.10 E1.12 LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
E1.11 E1.13
P1.5A P1.7A
P1.5B P1.7B 2. Internal users are those who plan, organize, and run businesses and
P1.8A include managers, supervisors, directors, and company officers. External
P1.8B
P1.11A
users work for other organizations but have reasons to be interested in the
P1.11B company’s financial position and performance, and include current or
6. Prepare financial Q1.19 BE1.15 P1.10A potential investors (owners), and creditors.
statements. Q1.20 BE1.16 P1.10B
E1.9 BE1.17
BE1.18 Internal users may want answers to several types of questions. For
E1.14 example, the finance department wants to know if there is enough cash to
E1.15
E1.16
pay the bills. The marketing department wants to know what price the
E1.17 business should use in selling its products to maximize profits. The human
P1.6A resources department wants to know how many people the business can
P1.6B
P1.7A
afford to hire. The production department wants to know which product
P1.7B lines make the business the most profit.
P1.8A
P1.8B
P1.9A
External users may want answers to several types of questions. For
P1.9B example, investors want to know if the company is earning enough to give
P1.11A them a return on their investment. Creditors want to know if the company
P1.11B
Broadening Your BYP1.1 Santé Saga BYP1.3 BYP1.4 BYP1.2
is able to pay its debts as they come due. Labour unions want to know
Perspective BYP1. 6 BYP1.5 whether the owners can afford to pay increased wages and benefits.
Customers are interested in whether a company will continue to honour its
product warranties and support its product lines. Taxing authorities want to
know whether the company respects the tax laws. Regulatory agencies
want to know whether the company is respecting established rules.
LO 1 BT: C Difficulty: M Time: 15 min. AACSB: None CPA: cpa-t001 CM: Reporting
3. The main objective of financial reporting is to provide useful information to
investors and creditors (external users) to make decisions about a
business. Users may be potential investors who need to decide if they
wish to invest in the business or they may be creditors deciding if they
wish to lend money to the business. These users want to know if the
business is running successfully and can generate cash and earn a profit.
LO 1 BT: C Difficulty: S Time: 5 min. AACSB: None CPA: cpa-t001 CM: Reporting
Solutions Manual 1.7 Chapter 1 Solutions Manual 1.8 Chapter 1
. .
