Directed by: John G. Avildsen
Starring: Elisabeth Shue, Ralph Macchio, Pat Morita, Martin Kove
Continuity mistake: We first see from the inside of the door (and therefore backwards) the instructions that Mr. Miyagi leaves for Daniel to paint the house. In the next shot we see the same note from the outside - from Daniel's viewpoint. Clearly they are two different notes. The left & right arrows switch directions, the drawings of the hands change, the position of Miyagi's signature changes, and the placement of some of the exclamation points changes.
Trivia: Daryl Vidal created the crane kick for the movie and was Pat Morita's stunt double during the scene where Miyagi is perfoming the crane kick on the stumps.
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Answer: Daniel's wounds came from fighting the Cobra Kai guys but he tells Miyagi that he was injured falling off of his bike. Miyagi sees through this and sarcastically says that he's lucky his hand wasn't hurt.
Damian Torres
I think he was also subtle letting him know he knew he didn't really fall off his bike because if he had, he would have at the very least scraped his hands...especially if he fell hard enough to cause that much damage to his face.
He was still trying to hide it. However, if you fall, you instinctively put out your hands, and they would be scraped up. Miyagi, older and experienced in life, knew better, but Daniel wasn't going to admit it outright.