SOLUTION MANUAL
Financial Accounting 11th Edition
by Jerry J. Weygandt, Paul D. Kimmel
Chapters 1 - 13 | Complete
,TABLE OF CONTENTS in in
Chapter 1. Accounting in Action
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Chapter 2. The Recording Process
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Chapter 3. Adjusting the Accounts
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Chapter 4. Completing the Accounting Cycle
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Chapter 5. Accounting for Merchandising Operations
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Chapter 6. Inventories
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Chapter 7. Fraud, Internal Control and Cash
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Chapter 8. Accounting for Receivables
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Chapter 9. Plant Assets, Natural Resources and Intangible Assets
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Chapter 10. Liabilities
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Chapter 11. Corporations: Organisations, Stock Transactions and Stockholders’ E
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quity
Chapter 12. Statement of Cash Flows
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Chapter 13. Financial Analysis: The Big Picture
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,CHAPTER 1
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Accounting in Action in in
ASSIGNMENT CLASSIFICATION TABLE
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BriefinExerc A
LearninginObjectives Questions ises DoinIt! Exercises Problems
1. 1,in2,in3,in4,in5 1 1,in2
Identifyintheinactivitiesinandin
usersinassociatedinwithinacc
ounting.
2.inExplainintheinbuildinginblocksinofinacc 6,in7,in8,in9,in10 2 3,in4
ounting:inethics,inprinciples,ian ndin
assumptions.
3. 11,in12,in13,in14. 1,in2,in3,in4,in5 3 5
Stateintheinaccountingineq 22
uation,inandindefineinitscin o
mponents.
4. 15,in16,in18 6,in7,in8,in9 4 6,in7,in8 1A,in2A,in4A,
Analyzeintheineffectsinofinbusines 5A
sintransactionsinonintheain ccountin
ginequation.
5. 17,in19,in20,in21, 10,in11 5 8,in9,in10,in11, 2A,in3A,in4A,
Describeintheinfourinfinancialinsta 12,in13,in14,in15, 5A
tementsinandinhowintheyinarep in re
16,in17,in18
pared.
, ANSWERS TO QUESTIONS in in
1. True. Virtually every organization and person in our society uses accounting information. Businesses, inv
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estors, creditors, government agencies, and not-for-
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profit organizations must use accounting information to operate effectively.
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LOi n 1,i n BT:i n K,i n Difficulty:i n Easy,i n TOT:i n 2i n min.,i n AACSB:i n None,i n AICPAi n FC:i n Reporting,i n IMA:i n Reporting
2. Accounting is the process of identifying, recording, and communicating the economic events of an or
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ganization to interested users of the information. The first activity of the accounting process is to identif
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y economic events that are relevant to a particular business. Once identified and measured, the events
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are recorded to provide a history of the financial activities of the organization. Recording consists of kee
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ping a chronological diary of these measured events in anorderly and systematic manner. The informati
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on is communicated through the preparation and distribution of accounting reports, the most com
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mon of which are called financial statements.A vital element in the communication process is the ac
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countant’s ability and responsibility to analyze and interpret the reported information.
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3. (a) Internal users are those who plan, organize, and run the business and therefore are officers and oth
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er decision makers. in in
(b) To assist management, accounting provides internal reports. Examples include financial compariso
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ns of operating alternatives, projections of income from new sales campaigns,and forecasts of c
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ash needs for the next year. in in in in in
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4. (a) Investors (owners) use accounting information to make decisions to buy, hold, or sell stock.
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(b) Creditors use accounting information to evaluate the risks of granting credit or lending money.
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5. False. Bookkeeping usually involves only the recording of economic events and therefore is just one part
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of the entire accounting process. Accounting, on the other hand, involves the entire process of identifyi
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ng, recording, and communicating economic events.
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6. Harper Travel Agency should report the land at $85,000 on its December 31, 2022 balance sheet. This
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is true not only at the time the land is purchased, but also over the time the land is held. In determinin
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g which measurement principle to use (historical cost or fair value) companies weigh the factual nature
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of cost figures versus the relevance of fair value. In general, companies use historical cost. Only in situat
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ions where assets are actively traded do companies apply the fair value principle.
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LOi n 2,i n BT:i n C,i n Difficulty:i n Easy,i n TOT:i n 2i n min.,i n AACSB:i n None,i n AICPAi n FC:i n Measurement,i n Analysisi n andi n Interpretationi n IMA:in
Reporting
7. The monetary unit assumption requires that only transaction data capable of being expressed in terms
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of money be included in the accounting records. This assumption enables accounting to quantify (meas
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ure) economic events.in in
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in eporting
