Part 1 Refer to WestJets income statement in Appendix III at the end of the textbook. a.

Question:

Part 1

Refer to WestJet’s income statement in Appendix III at the end of the textbook.

a. Prepare two possible adjusting entries that would have caused 2017 guest revenues to increase.

b. Prepare two possible adjusting entries that would have caused 2017 aircraft fuel expenses to increase.

Part 2

Refer to WestJet’s balance sheet in Appendix III at the end of the textbook.

c. Prepare a possible adjusting entry that could have caused the December 31, 2017, balance in Prepaid expenses, deposits, and other to decrease.

d. Prepare a possible adjusting entry that could have caused the December 31, 2017, balance in Accounts payable and accrued liabilities to increase.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... 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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