Part A: 1. Refer to Appendix III at the end of the textbook for the December 31,

Question:

Part A:
1. Refer to Appendix III at the end of the textbook for the December 31, 2017, balance sheet for WestJet, a Canadian airline based in Calgary. What types of assets does WestJet have?

2. To what level of significance are the dollar amounts rounded on the financial statements?

3. Prove the accounting equation for WestJet at December 31, 2017.

4. Assume that the personal home of one of the owners of WestJet (a shareholder) is valued at over $2,000,000. Should it be included as an asset on the balance sheet for WestJet? Why or why not?

5. Identify a potential internal user who would be interested in WestJet’s statements and explain his or her interest.

Part B:

6. Refer to Appendix III at the end of the textbook for the December 31, 2017, balance sheet for Spin Master, a Canadian global toy and entertainment company based in Toronto. Identify the following for Spin Master at December 31, 2017:

a. Total assets

b. Total net assets

Prove the accounting equation for Spin Master at December 31, 2017.

7. Notice that the balance sheet provides data for two years. Why do you think information has been presented for both December 31, 2017 and December 31, 2016?

8. Identify a potential external user who would be interested in Spin Master’s statements and explain his or her interest.

Balance Sheet
Balance 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...

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Related Book For answer-question

Fundamental Accounting Principles Volume I

ISBN: 978-1260305821

16th Canadian edition

Authors: Kermit Larson, Tilly Jensen, Heidi Dieckmann

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Question Posted: Dec 06, 2019 10:30 AM

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Part A: 1. Refer to Appendix III at the end of the textbook for the December 31,

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Part A 1 WestJets assets are classified into four groups on the December 31 2017 balance sheet curre...View the full answer

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