2017 2016 Revenue: Guest Other 3,822,045 680,275 4,502,320 3,556,941 565,918 4,122,859 Operating expenses: Aircraft fuel 950,043 765,867 Salaries and benefits 935,145 854,056 Rates and fees 644,763 617,573 Depreciation and amortization 6 403,021 350,484 Sales and marketing 384,452 356,745 Maintenance 203,227 209,226 Aircraft leasing. 165,902 178,445 Other Employee profit share Earnings from operations Non-operating income (expense): Finance income, 330,014 291,024 46,793 59,342 4,063,360 438,960 3,682,762 440,097 19,626 16,618 Finance cost 14 (53,710) (49,074) Gain (loss) on foreign exchange (4.877) 7,402 Gain (loss) on disposal of property and equipment 6,562 (3,314) Gain (loss) on derivatives (2.426) 4,504 (34,825) (23,864) Earnings before income tax 404.135 416,233 Income tax expense (recovery): Current Deferred Net earnings Earnings per share: Basic Diluted The accompanying notes are an integral part of the consolidated financial statements. 10 58,645 133,055 10 61,912 (12,280) 120,557 120,775 283,578 295,458 13 13 33 2.44 2.42 2.46 2.45 2314 005 5647 FFS 2-2 1. Refer to WestJet's income statement in Appendix III at the end of the textbook. a. Total Guest revenues for 2017 were $3,822,045 (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 2017? Hint: Which GAAP? b. Total Finance costs for 2017 were $53,710 (thousand). (i) Prepare a possible journal entry that might have recorded the interest expense. (ii) Do expenses affect the balance sheet? Explain