Solution Manual for Financial and Managerial Accounting, 3rd Edition, Weygandt Kimmel

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  • ISBN-10 ‏ : ‎ 1119391512
  • ISBN-13 ‏ : ‎ 978-1119391517
  • Author:  Weygandt, Kimmel

Financial and Managerial Accounting provides students with a clear introduction to fundamental accounting concepts beginning with the building blocks of the accounting cycle and continuing through financial statements. This product is ideal for a two-semester Financial and Managerial Accounting sequence where students spend equal time learning financial and managerial accounting concepts as well as learn the accounting cycle from a corporate perspective.

Table of contents:

1 Accounting in Action 1-1

Knowing the Numbers: Columbia Sportswear 1-1

Accounting Activities and Users 1-3

The Building Blocks of Accounting 1-6

The Accounting Equation 1-11

Analyzing Business Transactions 1-13

The Financial Statements 1-21

Appendix 1A: Career Opportunities in Accounting 1-25

A Look at IFRS 1-47

2 The Recording Process 2-1

Accidents Happen: MF Global Holdings 2-1

Accounts, Debits, and Credits 2-2

The Journal 2-8

The Ledger and Posting 2-11

A Look at IFRS 2-46

3 Adjusting the Accounts 3-1

Keeping Track of Groupons: Groupon 3-1

Accrual-Basis Accounting and Adjusting Entries 3-2

Adjusting Entries for Deferrals 3-6

Adjusting Entries for Accruals 3-13

Adjusted Trial Balance and Financial Statements 3-20

Appendix 3A: Adjusting Entries for the Alternative Treatment of Deferrals 3-24

Appendix 3B: Financial Reporting Concepts 3-27

A Look at IFRS 3-56

4 Completing the Accounting Cycle 4-1

Everyone Likes to Win: Rhino Foods 4-1

The Worksheet 4-2

Closing the Books 4-8

The Accounting Cycle and Correcting Entries 4-16

Classified Balance Sheet 4-20

Appendix 4A: Reversing Entries 4-26

A Look at IFRS 4-54

5 Accounting for Merchandising Operations 5-1

Buy Now, Vote Later: REI 5-1

Merchandising Operations and Inventory Systems 5-3

Recording Purchases under a Perpetual System 5-6

Recording Sales Under a Perpetual System 5-11

The Accounting Cycle for a Merchandising Company 5-15

Multiple-Step and Comprehensive Income Statements 5-17

Appendix 5A: Merchandising Company Worksheet 5-22

Appendix 5B: Periodic Inventory System 5-24

A Look at IFRS 5-53

6 Inventories 6-1

“Where is That Spare Bulldozer Blade?”: Caterpillar 6-1

Classifying and Determining Inventory 6-2

Inventory Methods and Financial Effects 6-7

Effects of Inventory Errors 6-15

Inventory Presentation and Analysis 6-17

Appendix 6A: Inventory Cost Flow Methods in Perpetual Inventory Systems 6-20

Appendix 6B: Estimating Inventories 6-22

A Look at IFRS 6-47

7 Fraud, Internal Control, and Cash 7-1

Minding the Money in Madison: Barriques 7-1

Fraud and Internal Control 7-2

Cash Controls 7-11

Control Features of a Bank Account 7-19

Reporting Cash 7-27

A Look at IFRS 7-48

8 Accounting for Receivables 8-1

A Dose of Careful Management Keeps Receivables Healthy: Whitehall-Robins 8-1

Recognition of Accounts Receivable 8-2

Valuation and Disposition of Accounts Receivable 8-5

Notes Receivable 8-13

Presentation and Analysis of Receivables 8-18

A Look at IFRS 8-39

9 Plant Assets, Natural Resources, and Intangible Assets 9-1

How Much for a Ride to the Beach?: Rent-A-Wreck 9-1

Plant Asset Expenditures 9-2

Depreciation Methods 9-7

Plant Asset Disposals 9-14

Natural Resources and Intangible Assets 9-17

Statement Presentation and Analysis 9-21

Appendix 9A: Exchange of Plant Assets 9-23

10 Liabilities 10-1

Financing His Dreams: Wilbert Murdock 10-1

Accounting for Current Liabilities 10-3

Major Characteristics of Bonds 10-8

Accounting for Bond Transactions 10-12

Accounting for Long-Term Notes Payable 10-18

Reporting and Analyzing Liabilities 10-20

Appendix 10A: Straight-Line Amortization 10-24

Appendix 10B: Effective-Interest Amortization 10-26

A Look at IFRS 10-52

11 Corporations: Organization, Stock Transactions, and Stockholders’ Equity 11-1

Oh Well, I Guess I’ll Get Rich: Facebook 11-1

Corporate Form of Organization 11-2

Accounting for Stock Issuances 11-10

Dividends and Stock Splits 11-17

Reporting and Analyzing Stockholders’ Equity 11-25

Statement 11-30

Appendix 11B: Book Value per Share 11-31

A Look at IFRS 11-55

12 Statement of Cash Flows 12-1

Got Cash?: Microsoft 12-1

Usefulness and Format of the Statement of Cash Flows 12-3

Indirect Method 12-6

Analyzing the Statement of Cash Flows 12-17

Appendix 12A: Statement of Cash Flows—Direct Method 12-19

Appendix 12B: Worksheet for the Indirect Method 12-26

Approach 12-31

A Look at IFRS 12-58

13 Financial Analysis: The Big Picture 13-1

It Pays to Be Patient: Warren Buffett 13-2

Sustainable Income and Quality of Earnings 13-3

Ratio Analysis 13-14

A Look at IFRS 13-51

14 Managerial Accounting 14-1

Just Add Water . . . and Paddle: Current Designs 14-1

Managerial Accounting Basics 14-3

Managerial Cost Concepts 14-7

Manufacturing Costs in Financial Statements 14-10

Managerial Accounting Today 14-14

15 Job Order Costing 15-1

Profiting from the Silver Screen: Disney 15-1

Cost Accounting Systems 15-3

Assigning Manufacturing Costs 15-7

Predetermined Overhead Rates 15-12

Entries for Jobs Completed and Sold 15-15

Applied Manufacturing Overhead 15-20

16 Process Costing 16-1

The Little Guy Who Could: Jones Soda 16-1

Overview of Process Cost Systems 16-3

Process Cost Flow and Assigning Costs 16-6

Equivalent Units 16-9

The Production Cost Report 16-12

Appendix 16A: FIFO Method for Equivalent Units 16-17

17 Activity-Based Costing 17-1

Precor is on Your Side: Precor 17-1

Traditional vs. Activity-Based Costing 17-3

ABC and Manufacturers 17-7

ABC Benefits and Limitations 17-12

ABC and Service Industries 17-17

Appendix 17A: Just-in-Time Processing 17-21

18 Cost-Volume-Profit 18-1

Don’t Worry—Just Get Big: Amazon.com 18-1

Cost Behavior Analysis 18-2

Mixed Costs Analysis 18-7

Cost-Volume-Profit Analysis 18-10

Break-Even Analysis 18-14

Target Net Income and Margin of Safety 18-18

Appendix 18A: Regression Analysis 18-21

19 Cost-Volume-Profit Analysis: Additional Issues 19-1

Not Even a Flood Could Stop It: Whole Foods Market 19-1

Basic CVP Concepts 19-3

Sales Mix and Break-Even Sales 19-8

Sales Mix with Limited Resources 19-12

Operating Leverage and Profitability 19-14

Appendix 19A: Absorption Costing vs. Variable Costing 19-18

20 Incremental Analysis 20-1

Keeping It Clean: Method Products 20-1

Decision-Making and Incremental Analysis 20-3

Special Orders 20-6

Make or Buy 20-8

Sell or Process Further 20-10

Repair, Retain, or Replace Equipment 20-14

Eliminate Unprofitable Segment or Product 20-15

21 Pricing 21-1

They’ve Got Your Size—and Color: Zappos.com 21-1

Target Costing 21-3

Cost-Plus and Variable-Cost Pricing 21-5

Time-and-Material Pricing 21-10

Transfer Prices 21-13

Variable-Cost Pricing 21-19

Different Countries 21-23

22 Budgetary Planning 22-1

What’s in Your Cupcake?: BabyCakes NYC 22-1

Effective Budgeting and the Master Budget 22-3

Sales, Production, and Direct Materials Budgets 22-8

Expense Budgets 22-13

Cash Budget and Budgeted Balance Sheet 22-17

Companies 22-22

23 Budgetary Control and Responsibility Accounting 23-1

Pumpkin Madeleines and a Movie: Tribeca Grand Hotel 23-1

Budgetary Control and Static Budget Reports 23-3

Flexible Budget Reports 23-6

Responsibility Accounting and Responsibility Centers 23-13

Investment Centers 23-22

Appendix 23A: ROI vs. Residual Income 23-26

24 Standard Costs and Balanced Scorecard 24-1

80,000 Different Caffeinated Combinations: Starbucks 24-2

Overview of Standard Costs 24-3

Direct Materials Variances 24-7

Direct Labor and Manufacturing Overhead Variances 24-11

Variance Reports and Balanced Scorecards 24-16

Appendix 24A: Standard Cost Accounting System 24-20

and Volume Variances 24-23

25 Planning for Capital Investments 25-1

Floating Hotels: Holland America Line 25-2

Capital Budgeting and Cash Payback 25-3

Net Present Value Method 25-6

Capital Budgeting Challenges and Refinements 25-11

Internal Rate of Return 25-16

Annual Rate of Return 25-18

Appendix A Specimen Financial Statements: Apple Inc. A-1

Appendix B Specimen Financial Statements: PepsiCo, Inc. B-1

Appendix C Specimen Financial Statements: The Coca-Cola Company C-1

Appendix D Specimen Financial Statements: Amazon.com, Inc. D-1

Appendix E Specimen Financial Statements: Wal-Mart Stores, Inc. E-1

Appendix F Specimen Financial Statements: Louis Vuitton F-1

Appendix G Time Value of Money G-1

Interest and Future Values G-1

Nature of Interest G-1

Future Value of a Single Amount G-3

Future Value of an Annuity G-5

Present Values G-7

Present Value Variables G-7

Present Value of a Single Amount G-7

Present Value of an Annuity G-9

Time Periods and Discounting G-11

Present Value of a Long-Term Note or Bond G-11

Capital Budgeting Situations G-14

Using Financial Calculators G-15

Present Value of a Single Sum G-16

Present Value of an Annuity G-17

Future Value of a Single Sum G-17

Future Value of an Annuity G-17

Internal Rate of Return G-18

Useful Applications of the Financial Calculator G-18

Appendix H Reporting and Analyzing Investments H-1

Accounting for Debt Investments H-1

Why Corporations Invest H-1

Accounting for Debt Investments H-3

Accounting for Stock Investments H-4

Holdings of Less than 20% H-4

Holdings Between 20% and 50% H-5

Holdings of More than 50% H-6

Reporting Investments in Financial Statements H-7

Debt Securities H-7

Equity Securities H-10

Balance Sheet Presentation H-11

Presentation of Realized and Unrealized Gain or Loss H-12

Appendix I Payroll Accounting* I-1

Recording the Payroll I-1

Determining the Payroll I-2

Recording the Payroll I-5

Employer Payroll Taxes I-7

FICA Taxes I-8

Federal Unemployment Taxes I-8

State Unemployment Taxes I-8

Recording Employer Payroll Taxes I-8

Filing and Remitting Payroll Taxes I-9

Internal Control for Payroll I-10

Appendix J Subsidiary Ledgers and Special Journals* J-1

Subsidiary Ledger J-1

Subsidiary Ledger Example J-2

Advantages of Subsidiary Ledgers J-3

Special Journals J-4

Sales Journal J-4

Cash Receipts Journal J-7

Purchases Journal J-10

Cash Payments Journal J-13

Effects of Special Journals on the General Journal J-15

Cybersecurity: A Final Comment J-16

Appendix K Other Significant Liabilities* K-1

Contingent Liabilities K-1

Reporting a Contingent Liability K-2

Disclosure of Contingent Liabilities K-3

Lease Liabilities K-3

Accounting for Lease Arrangements K-4

Balance Sheet Presentation K-4

Income Statement Presentation K-4

Additional Employee Compensation Benefits K-4

Paid Absences K-4

Postretirement Benefits K-5

Cases for Managerial Decision-Making*

Company Index I-1

Subject Index I-5

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