SOLUTION MANUAL x1
Financial Accounting 11th Edition
x1 x1 x1
by Jerry J. Weygandt, Paul D. Kimmel Chapters
x1 x1 x1 x1 x1 x1 x1
1 - 13 | Complete
x1 x1 x1 x1
,TABLEOFCONTENTS
Chapter 1. Accounting in Action Chapte
x1 x1 x1 x1 x1
r 2. The Recording Process Chapter 3. Ad
x1 x1 x1 x1 x1 x1 x1
justing the Accountsx1 x1
Chapter 4. Completing the Accounting Cycle
x1 x1 x1 x1 x1
Chapter 5. Accounting for Merchandising Operations Ch
x1 x1 x1 x1 x1 x1
apter 6. Inventories
x1 x1
Chapter 7. Fraud, Internal Control and Cash Cha
x1 x1 x1 x1 x1 x1 x1
pter 8. Accounting for Receivables
x1 x1 x1 x1
Chapter 9. PlantAssets, NaturalResources and Intangible Assets C
x1 x1 1
x x1 x1 x1 x1 x1 x1
hapter 10. Liabilities
x1 x1
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq u
x1 x1 x1 x1 x1 x1 x1 x1 x1
y
Chapter 12. Statement of Cash Flows
x1 x1 x1 x1 x1
Chapter 13. Financial Analysis: The Big Picture
x1 x1 x1 x1 x1 x1
,CHAPTER1
1
x
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
x1 x1 x1 x1 1 1, 2x1
Identify the activities an x1 x1 x1
d users associated with a
x1 x1 x1 x1
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
x1 x1 x1
d as sumptions.
x1 x1
3. 11, 12, 13, 14.
x1 x1 x1 1, 2, 3, 4, 5
x1 x1 x1 x1 3 5
State the accounting e
x1 x1 x1 22
q uation, and define it
x1 x1 x1 x1
sco mponents.
x1
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
x1 x1 x1 x1 5A
s s transactions on theaccoun
x1 x1 x1 x1
tin g equation.
x1 x1
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,
x1 x1 x1 5A
ements and how they areprepx1 x1 x1 x1 x1
16, 17, 18
x1 x1
ared.
, ANSWERS TO QUESTIONS x1 x1
1. True. Virtually every organization and person in our society uses accounting information. Businesses, i
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
nve stors, creditors, government agencies, and not-for-
x1 x1 x1 x1 x1 x1
profit organizations must use accounting information to operate effectively.
x1 x1 x1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x 1 x 1 x1 x1 x1 x1 x1
rgan ization to interested users of the information. The first activity of the accounting process is to id
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
entify eco nomic events that are relevant to a particular business. Once identified and measured, the
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x
1events are rec orded to provide a history of the financial activities of the organization. Recording con
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
sists of keeping a c hronological diary of these measured events in anorderly and systematic manner.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x
The information is com municated through the preparation and distribution of accounting reports, t
1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x 1 x 1
he most common of whic h are called financial statements.A vital element in the communicatio
x 1 x 1 x 1 x 1 x 1 x1 x 1 x1 x1 x1 x1 x1 x1 x1
n process is the accountant’s ability and responsibility to analyze and interpret the reported informati
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
ther decision makers. x1 x1
(b) To assist management, accounting provides internal reports. Examples include financial compari
x 1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
son s of operating alternatives, projections of income from new sales campaigns,and forecasts
x1 x1 x1 x1 x1 x1 x 1 x1 x1 x1 x 1 x1 x
of cash needs for the next year.
1 x1 x1 x1 x1 x1 x1
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.
x 1 x 1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
(b) Creditors2use accounting information to evaluate the risks of granting credit or lending money.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
art of the entire accounting process. Accounting, on the other hand, involves the entire process of ide
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
ntifying
, recording, and communicating economic events.
x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x 1 x 1 x1 x1
his is true not only at the time the land is purchased, but also over the time the land is held. In dete
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
rmining whi ch measurement principle to use (historical cost or fair value) companies weigh the factu
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
al nature of cost figures versus the relevance of fair value. In general, companies use historical cost.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
Only in situations whe re assets are actively traded do companies apply the fair value principle.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x 1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
s of money be included in the accounting records. This assumption enables accounting to quantify (
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
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
Financial Accounting 11th Edition
x1 x1 x1
by Jerry J. Weygandt, Paul D. Kimmel Chapters
x1 x1 x1 x1 x1 x1 x1
1 - 13 | Complete
x1 x1 x1 x1
,TABLEOFCONTENTS
Chapter 1. Accounting in Action Chapte
x1 x1 x1 x1 x1
r 2. The Recording Process Chapter 3. Ad
x1 x1 x1 x1 x1 x1 x1
justing the Accountsx1 x1
Chapter 4. Completing the Accounting Cycle
x1 x1 x1 x1 x1
Chapter 5. Accounting for Merchandising Operations Ch
x1 x1 x1 x1 x1 x1
apter 6. Inventories
x1 x1
Chapter 7. Fraud, Internal Control and Cash Cha
x1 x1 x1 x1 x1 x1 x1
pter 8. Accounting for Receivables
x1 x1 x1 x1
Chapter 9. PlantAssets, NaturalResources and Intangible Assets C
x1 x1 1
x x1 x1 x1 x1 x1 x1
hapter 10. Liabilities
x1 x1
Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ Eq u
x1 x1 x1 x1 x1 x1 x1 x1 x1
y
Chapter 12. Statement of Cash Flows
x1 x1 x1 x1 x1
Chapter 13. Financial Analysis: The Big Picture
x1 x1 x1 x1 x1 x1
,CHAPTER1
1
x
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
x1 x1 x1 x1 1 1, 2x1
Identify the activities an x1 x1 x1
d users associated with a
x1 x1 x1 x1
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
x1 x1 x1
d as sumptions.
x1 x1
3. 11, 12, 13, 14.
x1 x1 x1 1, 2, 3, 4, 5
x1 x1 x1 x1 3 5
State the accounting e
x1 x1 x1 22
q uation, and define it
x1 x1 x1 x1
sco mponents.
x1
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
x1 x1 x1 x1 5A
s s transactions on theaccoun
x1 x1 x1 x1
tin g equation.
x1 x1
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,
x1 x1 x1 5A
ements and how they areprepx1 x1 x1 x1 x1
16, 17, 18
x1 x1
ared.
, ANSWERS TO QUESTIONS x1 x1
1. True. Virtually every organization and person in our society uses accounting information. Businesses, i
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
nve stors, creditors, government agencies, and not-for-
x1 x1 x1 x1 x1 x1
profit organizations must use accounting information to operate effectively.
x1 x1 x1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x 1 x 1 x1 x1 x1 x1 x1
rgan ization to interested users of the information. The first activity of the accounting process is to id
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
entify eco nomic events that are relevant to a particular business. Once identified and measured, the
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x
1events are rec orded to provide a history of the financial activities of the organization. Recording con
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
sists of keeping a c hronological diary of these measured events in anorderly and systematic manner.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x
The information is com municated through the preparation and distribution of accounting reports, t
1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x 1 x 1
he most common of whic h are called financial statements.A vital element in the communicatio
x 1 x 1 x 1 x 1 x 1 x1 x 1 x1 x1 x1 x1 x1 x1 x1
n process is the accountant’s ability and responsibility to analyze and interpret the reported informati
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
ther decision makers. x1 x1
(b) To assist management, accounting provides internal reports. Examples include financial compari
x 1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
son s of operating alternatives, projections of income from new sales campaigns,and forecasts
x1 x1 x1 x1 x1 x1 x 1 x1 x1 x1 x 1 x1 x
of cash needs for the next year.
1 x1 x1 x1 x1 x1 x1
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.
x 1 x 1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
(b) Creditors2use accounting information to evaluate the risks of granting credit or lending money.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
art of the entire accounting process. Accounting, on the other hand, involves the entire process of ide
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
ntifying
, recording, and communicating economic events.
x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x 1 x 1 x1 x1
his is true not only at the time the land is purchased, but also over the time the land is held. In dete
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
rmining whi ch measurement principle to use (historical cost or fair value) companies weigh the factu
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
al nature of cost figures versus the relevance of fair value. In general, companies use historical cost.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
Only in situations whe re assets are actively traded do companies apply the fair value principle.
x1 x1 x1 x1 x1 x1 x1 x1 x1 x 1 x1 x1 x1 x1 x1
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
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
s of money be included in the accounting records. This assumption enables accounting to quantify (
x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1 x1
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
