Waterloo Brewing Limited, a Canadian producer and distributor of alcohol-based products, was profitable in fiscal 2020. The

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Waterloo Brewing Limited, a Canadian producer and distributor of alcohol-based products, was profitable in fiscal 2020. The following list of accounts and amounts was taken from its January 31, 2020, financial statements:


Instructions

a. Waterloo Brewing Limited is a corporation. Which of the items listed above are used only in corporations?

b. Prepare a trial balance for Waterloo Brewing with the accounts in financial statement order.

c. Waterloo Brewing has grouped several items together in its financial statements. For example, sales, marketing, and administration expenses are shown as one amount. What are some possible reasons for doing this?

d. In this chapter, you learned about unearned revenue. Waterloo Brewing has not reported unearned revenue. Why would this be reasonable? Give an example of a type of company that you would expect to report unearned revenue.

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Related Book For  book-img-for-question

Accounting Principles Volume 1

ISBN: 9781119786818

9th Canadian Edition

Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak

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