Solution Manual For Financial Accounting 11th Edition by Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso

SOLUTION MANUAL c




Financial Accounting 11th Edition
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by Jerry J. Weygandt, Paul D. Kimmel
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c Chapters 1 - 13 | Complete
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,TABLE OF CONTENTS c c




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’
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c Equity
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 c c




ASSIGNMENT CLASSIFICATION TABLE c c




Brief A
Learning Objectives
c Questions c Exercises Do It!
c Exercises Problems

1. Identify the activities c c 1, 2, 3, 4, 5
c c c c 1 1, 2c


candusers associated with
c c c


caccounting.

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


accounting:
c ethics, c


principles,and assumptions.
c c c




3. State the accounting
c c 11, 12, 13, 14.
c c c 1, 2, 3, 4, 5
c c c c 3 5
equation, and define
c c c 22
itscomponents.
c c




4. Analyze the effects of business
c c c c 15, 16, 18c c 6, 7, 8, 9
c c c 4 6, 7, 8
c c 1A, 2A, 4A,
c c


transactions on theaccounting
c c c c 5A
equation.
c




5. Describe the four financial c c c 17, 19, 20, 21,
c c c 10, 11 c 5 8, 9, 10, 11,
c c c 2A, 3A, 4A,
c c

statements and how they
c c c c
12, 13, 14, 15,
c c c 5A
areprepared.
c c
16, 17, 18
c c

, ANSWERS TO QUESTIONS c c




1. True. Virtually every organization and person in our society uses accounting information. Businesses,
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investors, creditors, government agencies, and not-for-profit organizations must use accounting
c c c c c c c c c c


information to operate effectively.
c c c c


LO c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting


2. Accounting is the process of identifying, recording, and communicating the economic events of an
c c c c c c c c c c c c c


organization to interested users of the information. The first activity of the accounting process is to
c c c c c c c c c c c c c c c c


identify economic events that are relevant to a particular business. Once identified and measured, the
c c c c c c c c c c c c c c c


events are recorded to provide a history of the financial activities of the organization. Recording consists
c c c c c c c c c c c c c c c c


of keeping a chronological diary of these measured events in an orderly and systematic manner. The
c c c c c c c c c c c c c c c c


information is communicated through the preparation and distribution of accounting reports, the
c c c c c c c c c c c c


cmost common of which are called financial statements. A vital element in the communication
c c c c c c c c c c c c c


process is the accountant’s ability and responsibility to analyze and interpret the reported information.
c c c c c c c c c c c c c c


LO c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting


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


decision makers. c c


(b) To assist management, accounting provides internal reports. Examples include financial
c c c c c c c c c


comparisons of operating alternatives, projections of income from new sales campaigns, and
c c c c c c c c c c c c


forecasts of cash needs for the next year.
c c c c c c c c


LO c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting


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 c 1, c BT: c K, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting


5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part
c c c c c c c c c c c c c c c


of the entire accounting process. Accounting, on the other hand, involves the entire process of
c c c c c c c c c c c c c c c


identifying, recording, and communicating economic events.
c c c c c c


LO c 1, c BT: c C, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Reporting, c IMA: c Reporting


6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This
c c c c c c c c c c c c c c c c


is true not only at the time the land is purchased, but also over the time the land is held. In determining
c c c c c c c c c c c c c c c c c c c c c c


which measurement principle to use (historical cost or fair value) companies weigh the factual nature of
c c c c c c c c c c c c c c c c


cost figures versus the relevance of fair value. In general, companies use historical cost. Only in situations
c c c c c c c c c c c c c c c c c


where assets are actively traded do companies apply the fair value principle.
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LO c 2, c BT: c C, c Difficulty: c Easy, c TOT: c 2 c min., c AACSB: c None, c AICPA c FC: c Measurement, c Analysis c and c Interpretation c IMA:
c Reporting


7. The monetary unit assumption requires that only transaction data capable of being expressed in terms of
c c c c c c c c c c c c c c c


money be included in the accounting records. This assumption enables accounting to quantify (measure)
c c c c c c c c c c c c c c


economic events.
c c


LO c2, cBT: cK, cDifficulty: cEasy, cTOT: c2 cmin., cAACSB: cNone, cAICPA cFC: cMeasurement, cAnalysis cand cInterpretation c IMA:cReporting