SOLUTION MANUAL Financial Accounting 11th Edition by Jerry J. Weygandt, Paul D. Kimmel Chapters 1 - 13 | Complete

SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete

,TABLE OF CONTENTS
Chapter 1. Accounting in Action
Chapter 2. The Recording Process
Chapter 3. Adjusting the Accounts
Chapter 4. Completing the Accounting Cycle
Chapter 5. Accounting for Merchandising Operations
Chapter 6. Inventories
Chapter 7. Fraud, Internal Control and Cash
Chapter 8. Accounting for Receivables
Chapter 9. Plant Assets, Natural Resources and Intangible Assets
Chapter 10. Liabilities
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’
Equity
Chapter 12. Statement of Cash Flows
Chapter 13. Financial Analysis: The Big Picture

,CHAPTER 1
Accounting in Action

ASSIGNMENT CLASSIFICATION TABLE

Brief A
Learning Objectives Questions Exercises Do It! Exercises Problems

1. Identify the activities and 1, 2, 3, 4, 5 1 1, 2
users associated with
accounting.

2. Explain the building blocks of 6, 7, 8, 9, 10 2 3, 4
accounting: ethics, principles,
and assumptions.

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

4. Analyze the effects of business 15, 16, 18 6, 7, 8, 9 4 6, 7, 8 1A, 2A, 4A,
transactions on theaccounting 5A
equation.

5. Describe the four financial 17, 19, 20, 21, 10, 11 5 8, 9, 10, 11, 2A, 3A, 4A,
statements and how they are 12, 13, 14, 15, 5A
prepared. 16, 17, 18

, ANSWERS70TO70QUESTIONS

1. True.70Virtually70every70organization70and70person70in70our70society70uses70accounting70information.70B
usinesses,70investors,70creditors,70government70agencies,70and70not-for-
profit70organizations70must70use70accounting70information70to70operate70effectively.
LO7 0 1,7 0 BT:7 0 K,7 0 Difficulty:7 0 Easy,7 0 TOT:7 0 270 min.,7 0 AACSB:7 0 None,7 0 AICPA7 0 FC:7 0 Reporting,7 0 IMA:7 0 Reporting


2. Accounting70is70the70process70of70identifying,70recording,70and7 0 communicating7 0 the70economic70eve
nts70of70an70organization70to70interested70users70of70the70information.70The70first70activity70of70the70ac
counting70process70is70to70identify70economic70events70that70are70relevant70to70a70particular70business.
70Once70identified70and70measured,70the70events70are70recorded70to70provide70a70history70of70the70fina
ncial70activities70of70the70organization.70Recording70consists70of70keeping70a70chronological70diary70of70t
hese70measured70events70in70an70orderly70and70systematic70manner.70The70information70is70communicat
ed70through70the70preparation70and70distribution70of70accounting7 0 reports,7 0 the7 0 most7 0 common
7 0 of7 0 which70are7 0 called70financial70statements.70A70vital70element70in70the70communication70proces
s70is70the70accountant’s70ability70and70responsibility70to70analyze70and70interpret70the70reported70infor
mation.
LO7 0 1,7 0 BT:7 0 K,7 0 Difficulty:7 0 Easy,7 0 TOT:7 0 270 min.,7 0 AACSB:7 0 None,7 0 AICPA7 0 FC:7 0 Reporting,7 0 IMA:7 0 Reporting


3. (a)70Internal70users70are70those70who70plan,70organize,70and70run70the70business70and70therefore70are7
0officers70and70other70decision70makers.
(b) To70assist70management,70accounting70provides70internal70reports.70Examples70include70financial70
comparisons70of70operating70alternatives,70projections70of7 0 income70from70new70sales7 0 campai
gns,70and70forecasts70of70 cash70needs70for70the70next70year.
LO7 0 1,7 0 BT:7 0 K,7 0 Difficulty:7 0 Easy,7 0 TOT:7 0 270 min.,7 0 AACSB:7 0 None,7 0 AICPA7 0 FC:7 0 Reporting,7 0 IMA:7 0 Reporting


4. (a)
Investors70(owners)70use70accounting70information70to70make70decisions70to70buy,70hold,70or70sell70sto
ck.
(b) Creditors70use70accounting70information70to70evaluate70the70risks70of70granting70credit70or70lending70money.
LO7 0 1,7 0 BT:7 0 K,7 0 Difficulty:7 0 Easy,7 0 TOT:7 0 270 min.,7 0 AACSB:7 0 None,7 0 AICPA7 0 FC:7 0 Reporting,7 0 IMA:7 0 Reporting


5. False.70Bookkeeping70usually70involves70only70the70recording70of70economic70events70and70therefore70is
70just70one70part70of70the70entire70accounting70process.70Accounting,70on70the70other70hand,70involves7
0the70entire70process70of70identifying,70recording,70and70 communicating70economic70events.
LO7 0 1,7 0 BT:7 0 C,7 0 Difficulty:7 0 Easy,7 0 TOT:7 0 270 min.,7 0 AACSB:7 0 None,7 0 AICPA7 0 FC:7 0 Reporting,7 0 IMA:7 0 Reporting


6. Harper70Travel70Agency70should70report70the70land70at70$85,00070on70its70December7031,7 0 20227 0 bal
ance70sheet.70This70is70true70not70only70at70the70time70the70land70is70purchased,70but70also70over70the7
0time70the70land70is70held.70In70determining70which70measurement70principle70to70use70(historical70cost
70or70fair70value)70companies70weigh70the70factual70nature70of70cost70figures70versus70the70relevance70
of70fair70value.70In70general,70companies70use70historical70cost.70Only70in70situations70where70assets70ar
e70actively70traded70do7 0 companies70apply70the70fair70value70principle.
LO7 0 2,7 0 BT:7 0 C,7 0 Difficulty:7 0 Easy,7 0 TOT:7 0 27 0 min.,7 0 AACSB:7 0 None,7 0 AICPA7 0 FC:7 0 Measurement,70 Analysis7 0 and7 0
Interpretation7 0 IMA:70Reporting


7. The70monetary70unit70assumption70requires70that70only70transaction70data70capable70of70being70expres
sed70in70terms70of70money70be70included70in70the70accounting70records.70This70assumption70enables70a