Part A:
1. Refer to Appendix II at the end of the textbook for the December 31, 2011, balance sheet for Westjet Airlines Ltd., a Canadian airline based in Calgary, Alberta. 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, 2011.
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 their interest.
Part B:
6. Refer to Appendix II at the end of the textbook for the June 25, 2011, balance sheet for Daniel Leather Inc., a Canadian specialty clothing designer, manufacturer, and retailer based in Toronto, Ontario. Identify the following for Danier at June 25, 2011:
a. Total assets
b. Total net assets
c. Prove the accounting equation for Danier at June 25, 2011.
7. Notice that the balance sheet provides data for two years. Why do you think information has been presented for both June 25, 2011, and June 26, 2010?
8. Identify a potential external user that would be interested in Danier's statements and explain their merest.