Solution Manual For Financial Accounting, 11th Edition by Jerry J. Weygandt, Paul D. Kimmel, Verified Chapters 1 - 13, Complete Newest Version

SOLUTION MANUAL x1




Financial Accounting 11th Edition
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by Jerry J. Weygandt, Paul D. Kimmel Chapters
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1 - 13 | Complete
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,TABLEOFCONTENTS
Chapter 1. Accounting in Action Chapte
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r 2. The Recording Process Chapter 3. Ad
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justing the Accountsx1 x1




Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations Ch
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apter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash Cha
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pter 8. Accounting for Receivables
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Chapter 9. PlantAssets, NaturalResources and Intangible Assets C
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hapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq u
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y
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER1
1
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Accounting in Action x1 x1




ASSIGNMENT CLASSIFICATION TABLE x1 x1




Brief Exerci
x1 A
Learning Objectives
x1 Questions ses Do It!
x1 Exercises Problems

1. 1, 2, 3, 4, 5
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Identify the activities an x1 x1 x1


d users associated with a
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cco unting.x1




2. Explain the building blocks of ac
x1 x1 x1 x1 x1 x1 6, 7, 8, 9, 10
x1 x1 x1 x1 2 3, 4x1


co unting: ethics, principles,an
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d as sumptions.
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3. 11, 12, 13, 14.
x1 x1 x1 1, 2, 3, 4, 5
x1 x1 x1 x1 3 5
State the accounting e
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q uation, and define it
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sco mponents.
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4. 15, 16, 18
x1 x1 6, 7, 8, 9
x1 x1 x1 4 6, 7, 8
x1 x1 1A, 2A, 4A,
x1 x1


Analyze the effects of busine
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s s transactions on theaccoun
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tin g equation.
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5. 17, 19, 20, 21,
x1 x1 x1 10, 11x1 5 8, 9, 10, 11,
x1 x1 x1 2A, 3A, 4A,
x1 x1

Describe the four financial stat x1 x1 x1 x1 x1
12, 13, 14, 15,
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ements and how they areprepx1 x1 x1 x1 x1
16, 17, 18
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ared.

, ANSWERS TO QUESTIONS x1 x1




1. True. Virtually every organization and person in our society uses accounting information. Businesses, i
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nve stors, creditors, government agencies, and not-for-
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profit organizations must use accounting information to operate effectively.
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LOx 1 1,x 1 BT:x 1 K,x 1 Difficulty:x 1 Easy,x 1 TOT:x 1 2x 1 min.,x 1 AACSB:x 1 None,x 1 AICPAx 1 FC:x 1 Reporting,x 1 IMA:x 1 Reporting


2. Accounting is the process of identifying, recording, and communicating the economic events of an o
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rgan ization to interested users of the information. The first activity of the accounting process is to id
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entify eco nomic events that are relevant to a particular business. Once identified and measured, the
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1events are rec orded to provide a history of the financial activities of the organization. Recording con
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sists of keeping a c hronological diary of these measured events in anorderly and systematic manner.
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The information is com municated through the preparation and distribution of accounting reports, t
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he most common of whic h are called financial statements.A vital element in the communicatio
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n process is the accountant’s ability and responsibility to analyze and interpret the reported informati
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on.
LOx 1 1,x 1 BT:x 1 K,x 1 Difficulty:x 1 Easy,x 1 TOT:x 1 2x 1 min.,x 1 AACSB:x 1 None,x 1 AICPAx 1 FC:x 1 Reporting,x 1 IMA:x 1 Reporting


3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and o
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ther decision makers. x1 x1


(b) To assist management, accounting provides internal reports. Examples include financial compari
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son s of operating alternatives, projections of income from new sales campaigns,and forecasts
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of cash needs for the next year.
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LOx 1 1,x 1 BT:x 1 K,x 1 Difficulty:x 1 Easy,x 1 TOT:x 1 2x 1 min.,x 1 AACSB:x 1 None,x 1 AICPAx 1 FC:x 1 Reporting,x 1 IMA:x 1 Reporting


4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors2use accounting information to evaluate the risks of granting credit or lending money.
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LOx 1 1,x 1 BT:x 1 K,x 1 Difficulty:x 1 Easy,x 1 TOT:x 1 2x 1 min.,x 1 AACSB:x 1 None,x 1 AICPAx 1 FC:x 1 Reporting,x 1 IMA:x 1 Reporting


5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one p
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art of the entire accounting process. Accounting, on the other hand, involves the entire process of ide
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ntifying
, recording, and communicating economic events.
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LOx 1 1,x 1 BT:x 1 C,x 1 Difficulty:x 1 Easy,x 1 TOT:x 1 2x 1 min.,x 1 AACSB:x 1 None,x 1 AICPA2x1FC:x 1 Reporting,x 1 IMA:x 1 Reporting


6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. T
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his is true not only at the time the land is purchased, but also over the time the land is held. In dete
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rmining whi ch measurement principle to use (historical cost or fair value) companies weigh the factu
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al nature of cost figures versus the relevance of fair value. In general, companies use historical cost.
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Only in situations whe re assets are actively traded do companies apply the fair value principle.
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LOx 1 2,x 1 BT:x 1 C,x 1 Difficulty:x 1 Easy,x 1 TOT:x 1 2x 1 min.,x 1 AACSB:x 1 None,x 1 AICPAx 1 FC:x 1 Measurement,x 1 Analysisx 1 andx 1 Interpretationx 1 IMA:x1 Reporting


7. The monetary unit assumption requires that only transaction data capable of being expressed in term
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s of money be included in the accounting records. This assumption enables accounting to quantify (
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measure) economic events. x1 x1


LOx1 2,x1 BT:x1 K,x 1 Difficulty:x 1 Easy,x1 TOT:x1 2x1 min.,x1 AACSB:x 1 None,x 1 AICPAx 1 FC:x 1 Measurement,x 1 Analysisx 1 andx 1 Interpretationx 1 IMA:Reporting