SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS 2 2
Chapter 1. Accounting in Action
2 2 2 2
Chapter 2. The Recording Process
2 2 2 2
Chapter 3. Adjusting the Accounts
2 2 2 2
Chapter 4. Completing the Accounting Cycle
2 2 2 2 2
Chapter 5. Accounting for Merchandising Operations
2 2 2 2 2
Chapter 6. Inventories
2 2
Chapter 7. Fraud, Internal Control and Cash
2 2 2 2 2 2
Chapter 8. Accounting for Receivables
2 2 2 2
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
2 2 2 2 2 2 2 2
Chapter 10. Liabilities
2 2
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq
2 2 2 2 2 2 2 2
uity
Chapter 12. Statement of Cash Flows
2 2 2 2 2
Chapter 13. Financial Analysis: The Big Picture
2 2 2 2 2 2 2
,CHAPTER 1
2
Accounting in Action 2 2
ASSIGNMENT CLASSIFICATION TABLE
2 2
Brief2Exerci A
Learning2Objectives Questions ses Do2It! Exercises Problems
1. 1,22,23,24,25 1 1,22
Identify2the2activities2and2
users2associated2with2acco
unting.
2.2Explain2the2building2blocks2of2acco 6,27,28,29,210 2 3,24
unting:2ethics,2principles,2and2as
sumptions.
3. 11,212,213,214. 1,22,23,24,25 3 5
State2the2accounting2eq 22
uation,2and2define2its2co
mponents.
4. 15,216,218 6,27,28,29 4 6,27,28 1A,22A,24A,
Analyze2the2effects2of2busines 5A
s2transactions2on2the2accountin
g2equation.
5. 17,219,220,221, 10,211 5 8,29,210,211, 2A,23A,24A,
Describe2the2four2financial2stat 12,213,214,215, 5A
ements2and2how2they2are2prep 16,217,218
ared.
, ANSWERS TO QUESTIONS 2 2
1. True.2Virtually2every2organization2and2person2in2our2society2uses2accounting2information.2Businesses,2inve
stors,2creditors,2government2agencies,2and2not-for-
profit2organizations2must2use2accounting2information2to2operate2effectively.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
2. Accounting2is2the2process2of2identifying,2recording,2and2 communicating2 the2economic2events2of2an2organ
ization2to2interested2users2of2the2information.2The2first2activity2of2the2accounting2process2is2to2identify2eco
nomic2events2that2are2relevant2to2a2particular2business.2Once2identified2and2measured,2the2events2are2rec
orded2to2provide2a2history2of2the2financial2activities2of2the2organization.2Recording2consists2of2keeping2a2c
hronological2diary2of2these2measured2events2in2an2orderly2and2systematic2manner.2The2information2is2com
municated2through2the2preparation2and2distribution2of2accounting2 reports,2 the2 most2 common2 of2 whic
h2are2 called2financial2statements.2A2vital2element2in2the2communication2process2is2the2accountant’s2ability
2and2responsibility2to2analyze2and2 interpret2the2 reported2 information.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
3. (a)2Internal2users2are2those2who2plan,2organize,2and2run2the2business2and2therefore2are2officers2and2other2
decision2makers.
(b) To2assist2management,2accounting2provides2internal2reports.2Examples2include2financial2comparison
s2of2operating2alternatives,2projections2of2 income2from2new2sales2 campaigns,2and2forecasts2of2 cash2
needs2for2the2next2year.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
4. (a) Investors2(owners)2use2accounting2information2to2make2decisions2to2buy,2hold,2or2sell2stock.
(b) Creditors2use2accounting2information2to2evaluate2the2risks2of2granting2credit2or2lending2money.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
5. False.2Bookkeeping2usually2involves2only2the2recording2of2economic2events2and2therefore2is2just2one2part2
of2the2entire2accounting2process.2Accounting,2on2the2other2hand,2involves2the2entire2process2of2identifying
,2recording,2and2communicating2economic2events.
LO2 1,2 BT:2 C,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
6. Harper2Travel2Agency2should2report2the2land2at2$85,0002on2its2December231,2 20222 balance2sheet.2This2is2
true2not2only2at2the2time2the2land2is2purchased,2but2also2over2the2time2the2land2is2held.2In2determining2whi
ch2measurement2principle2to2use2(historical2cost2or2fair2value)2companies2weigh2the2factual2nature2of2cost2
figures2versus2the2relevance2of2fair2value.2In2general,2companies2use2historical2cost.2Only2in2situations2whe
re2assets2are2actively2traded2do2 companies2apply2the2fair2value2principle.
LO2 2,2 BT:2 C,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Measurement,2 Analysis2 and2 Interpretation2 IMA:2Reporting
7. The2monetary2unit2assumption2requires2that2only2transaction2data2capable2of2being2expressed2in2terms2of2
money2be2included2in2the2accounting2records.2This2assumption2enables2accounting2to2quantify2(measure)2
economic2events.
LO22,2BT:2K,2Difficulty:2Easy,2TOT:222min.,2AACSB:2None,2AICPA2FC:2Measurement,2Analysis2and2Interpretation2 IMA:2Reporting
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS 2 2
Chapter 1. Accounting in Action
2 2 2 2
Chapter 2. The Recording Process
2 2 2 2
Chapter 3. Adjusting the Accounts
2 2 2 2
Chapter 4. Completing the Accounting Cycle
2 2 2 2 2
Chapter 5. Accounting for Merchandising Operations
2 2 2 2 2
Chapter 6. Inventories
2 2
Chapter 7. Fraud, Internal Control and Cash
2 2 2 2 2 2
Chapter 8. Accounting for Receivables
2 2 2 2
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
2 2 2 2 2 2 2 2
Chapter 10. Liabilities
2 2
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq
2 2 2 2 2 2 2 2
uity
Chapter 12. Statement of Cash Flows
2 2 2 2 2
Chapter 13. Financial Analysis: The Big Picture
2 2 2 2 2 2 2
,CHAPTER 1
2
Accounting in Action 2 2
ASSIGNMENT CLASSIFICATION TABLE
2 2
Brief2Exerci A
Learning2Objectives Questions ses Do2It! Exercises Problems
1. 1,22,23,24,25 1 1,22
Identify2the2activities2and2
users2associated2with2acco
unting.
2.2Explain2the2building2blocks2of2acco 6,27,28,29,210 2 3,24
unting:2ethics,2principles,2and2as
sumptions.
3. 11,212,213,214. 1,22,23,24,25 3 5
State2the2accounting2eq 22
uation,2and2define2its2co
mponents.
4. 15,216,218 6,27,28,29 4 6,27,28 1A,22A,24A,
Analyze2the2effects2of2busines 5A
s2transactions2on2the2accountin
g2equation.
5. 17,219,220,221, 10,211 5 8,29,210,211, 2A,23A,24A,
Describe2the2four2financial2stat 12,213,214,215, 5A
ements2and2how2they2are2prep 16,217,218
ared.
, ANSWERS TO QUESTIONS 2 2
1. True.2Virtually2every2organization2and2person2in2our2society2uses2accounting2information.2Businesses,2inve
stors,2creditors,2government2agencies,2and2not-for-
profit2organizations2must2use2accounting2information2to2operate2effectively.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
2. Accounting2is2the2process2of2identifying,2recording,2and2 communicating2 the2economic2events2of2an2organ
ization2to2interested2users2of2the2information.2The2first2activity2of2the2accounting2process2is2to2identify2eco
nomic2events2that2are2relevant2to2a2particular2business.2Once2identified2and2measured,2the2events2are2rec
orded2to2provide2a2history2of2the2financial2activities2of2the2organization.2Recording2consists2of2keeping2a2c
hronological2diary2of2these2measured2events2in2an2orderly2and2systematic2manner.2The2information2is2com
municated2through2the2preparation2and2distribution2of2accounting2 reports,2 the2 most2 common2 of2 whic
h2are2 called2financial2statements.2A2vital2element2in2the2communication2process2is2the2accountant’s2ability
2and2responsibility2to2analyze2and2 interpret2the2 reported2 information.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
3. (a)2Internal2users2are2those2who2plan,2organize,2and2run2the2business2and2therefore2are2officers2and2other2
decision2makers.
(b) To2assist2management,2accounting2provides2internal2reports.2Examples2include2financial2comparison
s2of2operating2alternatives,2projections2of2 income2from2new2sales2 campaigns,2and2forecasts2of2 cash2
needs2for2the2next2year.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
4. (a) Investors2(owners)2use2accounting2information2to2make2decisions2to2buy,2hold,2or2sell2stock.
(b) Creditors2use2accounting2information2to2evaluate2the2risks2of2granting2credit2or2lending2money.
LO2 1,2 BT:2 K,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
5. False.2Bookkeeping2usually2involves2only2the2recording2of2economic2events2and2therefore2is2just2one2part2
of2the2entire2accounting2process.2Accounting,2on2the2other2hand,2involves2the2entire2process2of2identifying
,2recording,2and2communicating2economic2events.
LO2 1,2 BT:2 C,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Reporting,2 IMA:2 Reporting
6. Harper2Travel2Agency2should2report2the2land2at2$85,0002on2its2December231,2 20222 balance2sheet.2This2is2
true2not2only2at2the2time2the2land2is2purchased,2but2also2over2the2time2the2land2is2held.2In2determining2whi
ch2measurement2principle2to2use2(historical2cost2or2fair2value)2companies2weigh2the2factual2nature2of2cost2
figures2versus2the2relevance2of2fair2value.2In2general,2companies2use2historical2cost.2Only2in2situations2whe
re2assets2are2actively2traded2do2 companies2apply2the2fair2value2principle.
LO2 2,2 BT:2 C,2 Difficulty:2 Easy,2 TOT:2 22 min.,2 AACSB:2 None,2 AICPA2 FC:2 Measurement,2 Analysis2 and2 Interpretation2 IMA:2Reporting
7. The2monetary2unit2assumption2requires2that2only2transaction2data2capable2of2being2expressed2in2terms2of2
money2be2included2in2the2accounting2records.2This2assumption2enables2accounting2to2quantify2(measure)2
economic2events.
LO22,2BT:2K,2Difficulty:2Easy,2TOT:222min.,2AACSB:2None,2AICPA2FC:2Measurement,2Analysis2and2Interpretation2 IMA:2Reporting
