1. Refer to Westjet's income statement in Appendix II at the end of the textbook.
a. Total Guest revenues for 2011 were $2,790,299 (thousand).
(i) Prepare two possible journal entries that might have been recorded to create this result.
(ii) What effect do revenues have on the balance sheet?
(iii) What assurances do we have that the revenues appearing on the income statement are for the year 2011? Hint: Which GAAP?
b. Total Finance costs for 2011 were $60,911 (thousand).
(i) Prepare a possible journal entry that might have recorded the interest expense.
(ii) Do expenses affect the balance sheet? Explain.
2. Refer to Westjet's balance sheet in Appendix II at the end of the textbook. Find the line showing Advance ticket sales of $432,186 (thousand).
a. Explain what you think the account Advance ticket sales represents.
b. Prepare the journal entry that might have recorded this account balance.