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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Accounts payable and accrued liabilities Accounts receivable Bank indebtedness Construction deposits Cost of sales Currrent portion of lease liabilities Current portion of long-term debt Deferred income tax liability Depreciation and amortization expense Finance costs Gain on disposal of property, plant and equipment and right-of-use assets Income tax expense Intangible assets Inventories Lease liabilities Long-term debt Loss on misappropriated funds, net $ 12,909,771 4,976,226 783,077 1,050,425 42,483,862 2,869,733 2,946,038 2,208,947 1,616,977 1,500,682 15,168 537,779 15,184,333 10,482,912 23,226,137 13,342,788 1,869,595