Solution Manual for Accounting Principles, 9th Canadian Edition Volume 1 & 2 by Weygandt, Kieso, Kimmel, Trenholm, Warren

Accounting Principles, 9th Canadian Edition

SOLUTION MANUALby




Accounting Principles, 9th Canadian Edition Volume 1 & 2
by by by by by by by by




By Jerry Weygandt, Donald Kieso,
by by by by




TABLE OF CONTENTS
by by by




Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition



Volume 1 by




1. Accounting in Action
by by by




2. The Recording Process
by by by




3. Adjusting the Accounts
by by by




4. Completion of the Accounting Cycle
by by by by by




5. Accounting for Merchandising Operations
by by by by




6. Inventory Costing
by by




7. Internal Control and Cash
by by by by




8. Accounting for Receivables
by by by




9. Long-Lived Assets
by by




10. Current Liabilities and Payroll
by by by by




Volume 2 by




9. Long-Lived Assets
by by




10. Current Liabilities and Payroll
by by by by




11. Financial Reporting Concepts
by by by




12. Accounting for Partnerships
by by by




13. Introduction to Corporations
by by by




14. Corporations: Additional Topics and IFRS
by by by by by




15. Non-Current Liabilities
by by




16. Investments
by




17. The Cash Flow Statement
by by by by




18. Financial Statement Analysis
by by by




CHAPTER 1
by




Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition


Accounting in Action by by




Learning Objectives by




1. Identify the use and users of accounting and the objective
by by by by by by by by by




offinancial reporting.
by yb by




2. Compare the different forms of business organization.
by by by by by by




3. Explain the building blocks of accounting: ethics and
by by by by by by by




theconcepts included in the conceptual framework.
by yb by by by by by




4. Describe the components of the financial statements
by by by by by by




andexplain the accounting equation.
by yb by by by




5. Analyze the effects of business transactions on
by by by by by by




theaccounting equation.
by yb by




6. Prepare financial statements. by by




Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition

Summary of Questions by Learning Objectives and Bloom‘s Taxonomy
by by by by by by by by




Item LO BTby Item LO BT Item LO BT b y Item LO b y BT Item LO by BT
Questions
1. 1 C yb 5. 3 C 9.
yb 3 C yb 13. 4 K yb 17. 5 C
2. 1 C yb 6. 3 K 10.
yb 3 C yb 14. 4 K yb 18. 5 by AP yb




3. 1 C 7. 3 K 11. 3 C 15. 4 C 19. 6 K
4. 2 K 8. 3 C 12. 4 K 16. 4 K 20. 6 C
Brief Exercises by




1. 1 K 5. 3 C 9.
yb 4 AP yb 13. 5 AP 17. yb 6 AP yb




2. 2 C
by 6. 3 C 10.
yb 4 AP yb 14. 4,5 AP 18. yb 6 AP
3. 3 A
by 7. 4 C 11. 4 K 15. 4,6 AP
4. 3 N 8. 4 AP 12. 5 AP 16. 6 AP
C
Exercises
1. 1 C yb 5. 1,3,5 K 9. 3,5,6 C yb 13. 4,5 AP 17. yb 6 AP
2. 1 C yb 6. 4 AP by yb 10. 5 C yb 14. 6 AP yb




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 b y 5. 3,5 C 8. 4,5,6 AP 11. 3,4,5,6 AP by by




b APy




3. 4 AP 6. 4,6 AP 9. 6 AP




Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition

Legend: The following abbreviations will appear throughout
by by by by by by




thesolutions manual file.
by yb by by




LO Learning objective by




Bloom's
BT Taxonomy
K Knowledge
C Comprehension
AP Application
AN Analysis
S Synthesis
E Evaluation
Difficulty: Level of difficulty
by by




S Simple
M Moderate
C Complex
Time: Estimated time to complete in minutes by by by by by




AACSB Association to Advance Collegiate Schools of by by by by by




BusinessCommunication
by Communication
yb




Ethics Ethics
Analytic Analytic
Tech. Technology
Diversity Diversity
Reflec. Thinking Reflective Thinking
by by




CPA CM
by CPA Canada Competency Map
by by by




Ethics Professional and Ethical Behaviour by by by




PS and DM
by Problem-Solving and Decision-Making
by by by




Comm. Communication
Self-Mgt. Self-Management
Team & Lead Teamwork and Leadership
by by by by




Reporting Financial Reporting by




Stat. & Gov.
by Strategy and Governance
by by by




Mgt. Accountingby Management Accounting by




Audit Audit and Assurance by by




Finance Finance
Tax Taxation


Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition

ASSIGNMENT CLASSIFICATION TABLE by by




Brief Problems Problems
Learning Objectives by Questions Exercises Exercises Set A by Set B by




1. Identify the use
by by by 1, 2, 3
by by 1 1, 2, 5
by by 1 1
and by users of yb by



accounting and the
by yb by



objective of financial
by by yb



reporting.
by



2. Compare the
by by 4 2 3, 2 2
differentforms of
by yb by



business organization.
by by




3. Explain the building
by by by 5, 6, 7, 8,
by by by 3, 4, 5, 6
by by by 3, 4, 5, 9,
by by by 2, 5, 7,
by by 2, 5, 7, 11
by by by



blocks of
by by 9, 10, 11
by by 10 11
accounting:ethics and
by yb by



the concepts
by by



included in the
by by by



conceptual
by



framework.
4. Describe the
by by 12, 13, 14.
by by 7, 8, 9,
by by 6, 7, 13
by by 3, 4, 6, 7,
by by by 3, 4, 6, 7,
by by by



components of the
by by by 15, 16 by 10, 11, 15
by by 8, 11
by 8, 11
by



financial statements
by by



and explain the
by by by



accounting equation.
by by




5. Analyze the effects
by by by 17, 18 by 12, 13, 14
by by 5, 8, 9,
by by 5, 7, 8,
by by 6, 7, 8, 9,
by by by



ofbusiness
by yb 10, 11, by 11 10, 11 by



transactionson the
by yb by 12, 13 by



accounting equation.
by by




6. Prepare
by 19, 20 by 14, 15, 16
by by 9, 14, 15,
by by 6, 7, 8, 9,
by by by 2, 5, 7, 11
by by by



financialstateme
by yb 17, 18 by 16, 17 by 10, 11 by



nts.




Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition

ASSIGNMENT CHARACTERISTICS TABLE
by by




Problem Difficulty Time
Number Description Level Allotted (min.)
by




1A Identify users and uses of accounting information.
by by by by by by Simple 15-20

2A Determine forms of business organization and
by by by by by Simple 15-20
types of accounting standards.
by by by



3A Determine missing items. by by Complex 20-25

4A Classify accounts and prepare accounting
by by by by Simple 20-30
equation.
5A Assess accounting treatment.
by by Moderate 20-25

6A Analyze transactions and calculate owner’s equity.
by by by by by Simple 35-45
7A Analyze transactions and prepare balance sheet.
by by by by by Simple 40-50

8A Analyze transactions and prepare financial
by by by by Moderate 40-50
statements.
9A Prepare financial statements.
by by Simple 35-45

10A Determine missing amounts, and comment.
by by by by Moderate 35-45
11A Discuss errors and prepare corrected
by by by by Moderate 45-55
balancesheet.
by yb




1B Identify users and uses of accounting information.
by by by by by by Simple 15-20

2B Determine forms of business organization and
by by by by by Simple 15-20
types of accounting standards.
by by by



3B Determine missing items. by by Complex 20-25

4B Classify accounts and prepare accounting
by by by by Simple 20-30
equation.
5B Assess accounting treatment.
by by Moderate 20-25

6B Analyze transactions and calculate owner’s equity.
by by by by by Simple 35-45

7B Analyze transactions and prepare balance sheet.
by by by by by Simple 40-50

8B Analyze transactions and prepare financial
by by by by Moderate 40-50
statements.
9B Prepare financial statements.
by by Simple 35-45
10B Determine missing amounts, and comment.
by by by by Moderate 35-45

11B Discuss errors and prepare corrected
by by by by Moderate 45-55
balancesheet.
by yb




Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition

BLOOM‘S TAXONOMY TABLE by by




Correlation Chart between Bloom’s Taxonomy, Learning Objectives and End-of-
by by by by by by by by



Chapter Material
yb by




Evaluati
yb


Learning Objective by Knowledge Comprehension Application Analysis Synthesis on
1. Identify the use
by by by Q1.3 Q1.1 yb P1.1A yb


andby users of yb by BE1.1
by yb Q1.2 yb P1.1B
accounting and the
by yb by E1.5 E1.1 yb


objective offinancial
by by yb E1.2
reporting.
by



2. Compare the
by by
Q1.4 P1.2A P1.2B
by



different forms
by by
BE1.2
by P1.11B
by



ofbusiness
by yb
BE1.4
by



organization.
by
BE1.10
by yb


E1.3
E1.7
by




3. Explain the building
by by by
Q1.6 yb Q1.5 P1.2A yb BE1.3
blocks of
by by
Q1.7 yb Q1.8
by P1.2B yb



accounting:ethics and
by yb by
E1.5 Q1.9
by P1.3A yb



the concepts
by by
Q1.10
by yb P1.3B yb



included in the
by by by
Q1.11 yb P1.7A yb



conceptual
by
BE1.4 P1.7B
framework.
by
BE1.5 P1.11A
BE1.6 P1.11B
E1.3
E1.4
E1.9
E1.10
P1.5A
P1.5B

4. Describe the
by by Q1.12 BE1.7 BE1.8
components of the by by Q1.13 BE1.9
financial statements by Q1.14 BE1.10
and explain the
by by Q1.16 BE1.14
accounting equation. by
BE1.11 BE1.15
E1.6
E1.7
E1.13
P1.4A
P1.4B
P1.6A
P1.6B
P1.7A
P1.7B
P1.8A
P1.8B
P1.11A
P1.11B




Accounting Principles, 9th Canadian Edition

,Accounting Principles, 9th Canadian Edition

BLOOM‘S TAXONOMY TABLE (Continued)
by by by




Evaluati
yb


Learning Objective
by Knowledge Comprehension Application Analysis Synthesis on
5. Analyze the effects
by by by Q1.19 Q1.17 Q1.18
of business
by E1.5 Q1.20 BE1.12
transactions on the by by E1.8 BE1.13
accounting equation.by E1.9 BE1.14
E1.10 E1.12
E1.11 E1.13
P1.5A P1.7A
P1.5B P1.7B
P1.8A
P1.8B
P1.11A
P1.11B
6. Prepare financial
by by Q1.19 BE1.15 P1.10A
statements. Q1.20 BE1.16 P1.10B
E1.9 BE1.17
BE1.18
E1.14
E1.15
E1.16
E1.17
P1.6A
P1.6B
P1.7A
P1.7B
P1.8A
P1.8B
P1.9A
P1.9B
P1.11A
P1.11B
Broadening Your by BYP1.1 Santé Saga
by BYP1.3 BYP1.4 BYP1.2
Perspective BYP1. 6
by BYP1.5




Accounting Principles, 9th Canadian Edition

, Accounting Principles, 9th Canadian Edition

ANSWERS TO QUESTIONS by by




1. Yes. Accounting is the financial information system that provides useful
by by by by by by by by by



financial information to every person who owns and uses economic resources
by by by by by by by by by by by



or otherwise engages in economic activity.
by by by by by by




LO 1 BT: C
by by by b y Difficulty: S by b y Time: 5 min. by by b y AACSB: None by b y CPA: cpa-t001 by b y CM: Reporting by




2. Internal users are those who plan, organize, and run businesses and include
by by by by by by by by by by yb



managers, supervisors, directors, and company officers. External users work
by by by by by by by by by



for other organizations but have reasons to be interested in the company’s
by by by by by by by by by by by yb



financial position and performance, and include current or potential investors
by by by by by by by by by by




(owners), and creditors.
by by by




Internal users may want answers to several types of questions. For example,
by by by by by by by by by by by



the finance department wants to know if there is enough cash to pay the bills.
by by by by by by by by by by by by by by by



The marketing department wants to know what price the business should use
by by by by by by by by by by by by



in selling its products to maximize profits. The human resources department
by by by by by by by by by by by



wants to know how many people the business can afford to hire. The
by by by by by by by by by by by by by



production department wants to know which product lines make the business
by by by by by by by by by by by



the most profit.
by by by




External users may want answers to several types of questions. For example,
by by by by by by by by by by by



investors want to know if the company is earning enough to give them a
by by by by by by by by by by by by by by



return on their investment. Creditors want to know if the companyis able
by by by by by by by by by by by yb by



to pay its debts as they come due. Labour unions want to know whether the
by by by by by by by by by by by by by by by



owners can afford to pay increased wages and benefits. Customers are
by by by by by by by by by yb by



interested in whether a company will continue to honour its product
by by by by by by by by by by by



warranties and support its product lines. Taxing authorities want to know
by by by by by by by by by by yb



whether the company respects the tax laws. Regulatory agencies want to
by by by by by by by by by by by




know whether the company is respecting established rules.
by by by by by by by by




LO 1 by b y BT: C by b y Difficulty: M by b y Time: 15 min. by by b y AACSB: None by b y CPA: cpa-t001 by b y CM: Reporting by




3. The main objective of financial reporting is to provide useful information to
by by by by by by by by by by by



investors and creditors (external users) to make decisions about a business.
by by by by by by by by by by by



Users may be potential investors who need to decide if they wish to invest
by by b y by by by by by by by by by by by



in the business or they may be creditors deciding if they wish to lend money
by by by by by by by b y by by by by by by by



to the business. These users want to know if the business is running
by by by by by by by by by by by by by



successfully and can generate cash and earn a profit.
by by by by by by by by by




LO 1 BT: C
by by by b y Difficulty: S by b y Time: 5 min. by by b y AACSB: None by b y CPA: cpa-t001 by b y CM: Reporting by




Accounting Principles, 9th Canadian Edition