Assume WestJet repaired one of its Boeing 737 aircraft at a cost of $0.8 million, which WestJet paid in cash. Further, assume that the WestJet accountant erroneously capitalized this cost as part of the cost of the plane. Show the effects of the accounting error on WestJet's income statement and balance sheet. Revenues would be correct. Total expenses would be understated. Net income would be overstated. Current assets would be overstated. Property, Plant, and Equipment would be understated. Total assets would be overstated. Total liabilities would be Shareholders' equity would be understated. Total liabilities and Shareholders' equity would be ... Next

Assume WestJet repaired one of its Boeing 737 aircraft at a cost of $0.8 million, which West Jet paid in cash. Further, assume that the WestJet accountant erroneously capitalized this cost as part of the cost of the plane. Show the effects of the accounting error on WestJet's income statement and balance sheet. Revenues would be Total expenses would be Net income would be Current assets would be Property, Plant, and Equipment would be Total assets would be Total liabilities would be Shareholders' equity would be Total liabilities and Shareholders' equity would be Assume WestJet repaired one of its Boeing 737 aircraft at a cost of $0.8 million, which WestJet paid in cash. Further, assume that the WestJet accountant erroneously capitalized this cost as part of the cost of the plane. Show the effects of the accounting error on WestJet's income statement and balance sheet. Revenues would be Total expenses would be Net income would be Current assets would be Property, Plant, and Equipment would be Total assets would be Total liabilities would be Shareholders' equity would be Total liabilities and Shareholders' equity would be