SOLUTION MANUAL
Accounting Principles 14th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 27, Complete
,TABLE OF CONTENTSY Y
1 Accounting in Action
Y Y Y Y
2 The Recording Process
Y Y Y Y
3 Adjusting the Accounts
Y Y Y
4 Completing the Accounting Cycle
Y Y Y Y
5 Accounting for Merchandising Operations
Y Y Y Y
6 Inventories
Y Y
7 Accounting Information Systems
Y Y Y Y
8 Fraud, Internal Control, and Cash
Y Y Y Y Y Y
9 Accounting for Receivables
Y Y Y Y
10 Plant Assets, Natural Resources, and Intangible Assets
Y Y Y Y Y Y Y
11 Current Liabilities and Payroll Accounting
Y Y Y Y Y
12 Accounting for Partnerships
Y Y Y
13 Corporations: Organization and Capital Stock Transactio
Y Y Y Y Y Y
ns
,14 Corporations: Dividends, Retained Earnings, and Income
Y Y Y Y Y Y Y
Reporting
15 Long-Term Liabilities
Y Y
16 Investments
Y
17 Statement of Cash Flows
Y Y Y Y
18 Financial Analysis: The Big Picture
Y Y Y Y Y Y
19 Managerial Accounting
Y Y Y
20 Job Order Costing
Y Y Y Y
21 Process Costing
Y Y Y
22 Cost-Volume-Profit
Y Y
23 Incremental Analysis
Y Y Y
24 Budgetary Planning
Y Y
25 Budgetary Control and Responsibility Accounting
Y Y Y Y Y Y
26 Standard Costs and Balanced Scorecard
Y Y Y Y Y Y
27 Planning for Capital Investments
Y Y Y Y Y
, CHAPTER 1 Y
ACCOUNTING IN ACTION Y Y
CHAPTERYLEARNINGYOBJECTIVES
1. IdentifyYtheYactivitiesYandYusersYassociatedYwithYaccounting.YAccountingYisYanYinformationYsystem
YthatYidentifies,Yrecords,YandYcommunicatesYtheYeconomicYeventsYofYanYorganizationYtoYinterestedYuse
rs.YTheYmajorYusersYandYusesYofYaccountingYareYasYfollows:Y(a)YManagementYusesYaccountingYinforma
tionYtoYplan,Yorganize,YandYrunYtheYbusiness.Y(b)YInvestorsY(owners)YdecideYwhetherYtoYbuy,Yhold,YorYs
ellYtheirYfinancialYinterestsYonYtheYbasisYofYaccountingYdata.Y(c)YCreditorsY(suppliersYandYbankers)Yeval
uateYtheYrisksYofYgrantingYcreditYorYlendingY moneyY onYtheYbasisYofYaccountingYinformation.YOtherYgro
upsYthatYuseYaccountingYinformationYareYtaxingYauthorities,YregulatoryYagencies,Ycustomers,YandYlabor
Yunions.
2. ExplainYtheYbuildingYblocksYofYaccounting:Yethics,Yprinciples,YandYassumptions.YEthicsYareYtheYst
andardsYofYconductYbyYwhichYactionsYareYjudgedYasYrightYorYwrong.YEffectiveYfinancialYreportingYdepen
dsYonYsoundYethicalYbehavior.
GenerallyYacceptedYaccountingYprinciplesYareYaYcommonYsetYofYstandardsYusedYbyYaccountants.YTheY
primaryYaccountingYstandard-
settingYbodyYinYtheYUnitedYStatesYisYtheYFinancialYAccountingYStandardsYBoard.
3. StateYtheYaccountingYequation,YandYdefineYitsYcomponents.YTheYbasicY accountingYequationYis:
AssetsY=YLiabilitiesY+YOwner'sYEquity
AssetsY areY resourcesY aY businessY owns.Y LiabilitiesY areY creditorshipY claimsY onY totalY assets.YOwner'sYe
quityYisYtheYownershipYclaimYonYtotalYassets.
TheYexpandedYaccountingYequationYis:
AssetsY YLiabilitiesY+YOwner'sYCapitalY YOwner'sYDrawingsY+YRevenuesY
Expenses
InvestmentsYbyYownersY(assetsYtheYownerYputsYintoYtheYbusiness)YareYrecordedYinYaYcategoryYcalledYo
wner‘sYcapital.YOwner‘sYdrawingsYareYtheYwithdrawalYofYassetsYbyYtheYownerYforYpersonalYuse.YReven
uesYareYtheYgrossYincreaseYinYowner‘sYequityYfromYbusinessYactivitiesYforYtheYpurposeYofYearningYinco
me.YExpensesYareYtheYcostsYofYassetsYconsumedYorYservicesYusedYinY theY processY ofY earningY revenu
e.Y Owner‘sY equityY isY increasedY byY anY owner‘sY investmentsYandYbyYrevenuesYfromYbusinessYoperatio
ns.YOwner‘sYequityYisYdecreasedYbyYanYowner‘sYwithdrawalsYofYassetsYandYbyYexpenses.
4. AnalyzeYtheYeffectsYofYbusinessYtransactionsYonYtheYaccountingYequation.YEachYbusinessYtransacti
onYmustYhaveYaYdualYeffectYonYtheYaccountingYequation.YForYexample,YifYanYindividualYassetYincreases,
YthereYmustYbeYaYcorrespondingY(1)YdecreaseYinYanotherYasset,YorY(2)YincreaseYinY aYspecificYliability,Yo
rY(3)YincreaseYinYowner'sYequity.
5. DescribeYtheYfourYfinancialYstatementsYandYhowYtheyYareYprepared.YAnYincomeYstatementYpresent
sYtheYrevenuesYandYexpenses,YandYresultingYnetYincomeYorYnetY lossYforYaY specificYperiodYofYtime.YAnY
owner'sYequityYstatementYsummarizesYtheYchangesYinYowner'sYequityYforYaYspecificYperiodYofYtime.YAY
balanceYsheetYreportsYtheYassets,Yliabilities,YandYowner'sYequityYatYaYspecificYdate.YAYstatementYofYca
shYflowsYsummarizesYinformationYaboutYtheYcashYinflowsY(receipts)YandYoutflowsY(payments)YforYaYsp
ecificYperiodYofYtime.