The following items are from the liability and shareholders' equity sections of WestJet Airlines Ltd.'s December 31,
Question:
The following items are from the liability and shareholders' equity sections of WestJet Airlines Ltd.'s December 31, 2010, balance sheet (in thousands):
Accounts payable and accrued liabilities.........................$303,583
Advance ticket sales..............................................................308,022
Current portion of long-term debt......................................183,789
Future income tax (long-term) ............................................337,410
Long-term debt......................................................................866,745
Other current liabilities...........................................................36,778
Other long-term liabilities......................................................18,838
Other shareholders' equity items.........................................52,064
Retained earnings.................................................................807,978
Share capital..........................................................................647,637
Instructions
(a) Identify the balance sheet (statement of financial position) category in which each of the above items should be classified.
(b) Prepare the liabilities and equity sections of the balance sheet.
(c) If you completed P2-3A, compare the total assets in P2-3A with the total liabilities and shareholders' equity in P2-4A. Do these two amounts agree?
Balance SheetBalance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...
Step by Step Answer:
a Item Statement of Financial Position Category Accounts payable and accrued liabilities Current liabilities Advance ticket sales Current liabilities ...View the full answer
Financial Accounting Tools for Business Decision Making
ISBN: 978-1118024492
5th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
