FINANCIAL ACCOUNTING INSTRUCTOR S SOLUTIONS MANUAL. IFRS Edition. Jerry J. Weygandt PhD, CPA. Paul D. Kimmel PhD, CPA. Donald E.

Transcription

1 INSTRUCTOR S SOLUTIONS MANUAL to accompany FINANCIAL ACCOUNTING IFRS Edition Jerry J. Weygandt PhD, CPA Arthur Andersen Alumni Professor of Accounting University of Wisconsin Madison, Wisconsin Paul D. Kimmel PhD, CPA Associate Professor of Accounting University of Wisconsin Milwaukee Milwaukee, Wisconsin Donald E. Kieso PhD, CPA Kpmg Emeritus Professor of Accounting Northern Illinois University DeKalb, Illinois JOHN WILEY & SONS, INC.

2 COVER PHOTO: SuperStock/SuperStock Copyright 2011 John Wiley & Sons, Inc. All rights reserved. Excerpts from this work may be reproduced by instructors for distribution on a not-for-profit basis for testing or instructional purposes only to students enrolled in courses for which the textbook has been adopted. Any other reproduction or translation of this work beyond that permitted by Sections 107 or 108 of the 1976 United States Copyright Act without the permission of the copyright owner is unlawful. Requests for permission or further information should be addressed to the Permissions Department, John Wiley & Sons, Inc, 111 River Street, Hoboken, NJ Evaluation copies are provided to qualified academics and professionals for review purposes only, for use in their courses during the next academic year. These copies are licensed and may not be sold or transferred to a third party. Upon completion of the review period, please return the evaluation copy to Wiley. Return instructions and a free of charge return shipping label are available at Outside of the United States, please contact your local representative. ISBN Printed in the United States of America Printed and bound by EPAC Technologies, Inc.

3 Contents Preface to the Instructor Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Accounting in Action The Recording Process Adjusting the Accounts Completing the Accounting Cycle Accounting for Merchandising Operations Inventories Fraud, Internal Control, and Cash Accounting for Receivables Plant Assets, Natural Resources, and Intangible Assets Liabilities Corporations: Organization, Share Transactions, Dividends, and Retained Earnings Investments Statement of Cash Flows Financial Statement Analysis The following solutions are available on the Weygandt Financial Accounting: IFRS Edition instructor companion site: Appendix C Appendix D Appendix E Appendix F Time Value of Money Payroll Accounting Subsidiary Ledgers and Special Journals Other Significant Liabilities iii

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5 Preface to the Instructor The presentation of the subject matter of the chapters in Financial Accounting: IFRS Edition is followed by questions, brief exercises, exercises, problems, and Broadening Your Perspective Problems. This Solutions Manual contains suggested answers to the questions and complete solutions to all of these assignment items, including solutions to the end-of-chapter material for Appendices C F. Assignment Classification Table. A unique feature of our Solutions Manual is a table that categorizes the end-of-chapter items (questions, brief exercises, exercises, problems, and alternate problems) by key topics in each chapter. Assignment Characteristics Table. Each chapter of this Solutions Manual contains a table offering: (1) a short description of each problem and alternate problem, (2) an indication of the level of difficulty (simple, moderate, or complex), and (3) the estimated time in minutes. Bloom s Taxonomy Table. Each chapter features a correlation chart showing the relationship between Bloom s taxonomy of learning and study objective for each end-of-chapter item, allowing for more targeted assignments and assessment. Questions. The questions at the end of each chapter provide a basis for classroom discussion of the topics presented in the chapter and serve as an aid to the students in testing their understanding of the text materials. They deal with both conceptual and procedural matters. The sequence of questions generally corresponds to the topical coverage in the text. Full and complete answers to these questions are presented in this manual. Brief Exercises. Each brief exercise focuses on one of the study objectives listed at the beginning of the chapter. Because these brief exercises are straightforward and simple, they build the student s confidence and test basic skills. Do IT! Review Exercises. Provide additional practice of the Do IT! mini-demonstration problems integrated within the narrative of each textbook chapter. Exercises. Generally, the exercises cover a specific topic and require less time and effort to solve than the problems. In addition to serving as supplemental assignment material, the exercises may be used for class discussion and for examination purposes. Problems Set A and B. Whereas the goal of the exercises is brevity of solution time and coverage of essential principles or methodology with minimum difficulty, the problems are designed to develop a professional level of achievement and, therefore, are generally more challenging to solve. We have arranged the problems, as much as possible, in the same order as the discussion in the chapter. Some of the problems are routine and can be solved by following procedures that are illustrated in the text. The more difficult problems may blend a diversity of principles into a single situation requiring a series of steps, computations, or solutions and demand interpretation, analysis, and judgment. Solutions to the Continuing Cookie Chronicle are found on the Weygandt Financial Accounting: IFRS Edition instructor website. v

6 Broadening Your Perspective Financial Reporting Problems. The financial reporting problems require students to use (as opposed to prepare) a set of real-world financial statements. Some of these problems require the student to locate information in Lands End s financial statements or the accompanying notes and management discussion. Others of these reporting problems require analysis and evaluation of the content of these real-world financial statements and notes. Comparative Analysis Problems. The comparative analysis problems require the student to compare and analyze the financial information contained in Lands End s and Abercrombie & Fitch s financial statements. Exploring the Web. Each chapter has an exploring the web problem that allows students to find and analyze information related to a chapter topic on various web sites. Decision Making Across the Organization. Each Decision Making Across the Organization question applies accounting information to other non-accounting functions of business such as finance, marketing, or management. Communication Activities. In each chapter, the authors have integrated writing assignments in the end-of-chapter exercises and problems. These writing assignments are highlighted by the yellow pencil icon at the beginning of the relevant instruction. In addition, every chapter contains a separate communication assignment in the Broadening Your Perspective section. These communication assignments require that the student write a memo, letter, or report to a designated person or audience. Ethics Cases. The ethics case sensitizes the student to ethical situations in a business or accounting environment. The student is asked to identify the stakeholders (affected parties) in each case as well as the ethical considerations and issues involved. In some cases the student must evaluate the consequences of several alternative courses of action from an ethical viewpoint. vi

7 Acknowledgments We sincerely thank the following individuals for their expert assistance in reviewing and checking the material contained in this Solutions Manual: LuAnn Bean, Florida Institute of Technology, James Emig, Villanova University; Larry Falcetto, Emporia State University; Kirk Lynch, Sandhills Community College, Barbara Muller, Arizona State University West; Yvonee Phang, Borough of Manhattan Community College; Alice Sineath, Forsyth Technical Community College; Lynn Stallworth, Appalachian State University; Dick Wasson, Southwestern College; Sheila Viel, University of Wisconsin Milwaukee. We also greatly appreciate the composition, proofing, and editorial assistance provided by Danielle Urban and other staff members of Elm Street Publishing Services, and by Cyndy Taylor, Terry Ann Kremer, Erin Bascom, and Dorothy Sinclair at John Wiley & Sons, Inc. Jerry J. Weygandt Donald E. Kieso Paul D. Kimmel vii

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