ADM 1340 M & P
INTRODUCTORY FINANCIAL ACCOUNTING
The following accounts have been selected from the financial statements of
Maple Leaf Foods Inc.:
Accounts payable and accrued charges
Cost of goods sold
Property and equipment
Selling, general, and administrative expenses
(a) Classify each account as an asset (A), liability (L), shareholders' equity
(SE), revenue (R), or expense (E) item.
(b) Classify each account as being used for operating (O), investing (I), or
financing (F) activities. If you believe a particular account does not fit in
any of these activities, explain why.
Selected information (in millions) is available for Sears Canada Inc. and
Canadian Tire Corporation, Limited for a recent fiscal year:
Sears Canadian Tire
Beginning of year
Total assets $  $7,784
Total liabilities 1,754 
Total shareholders' equity 1,483 3,565
End of year
Total assets 3,405 
Total liabilities  5,102
Total shareholders' equity 1,658 
Changes during year in shareholders' equity
Issue of shares 0 5
Dividends 0 69
Total revenues 5,201 8,687
Total expenses  8,352
Other decreases in shareholders' equity 60 148
(a) Determine the missing amounts for  to .
(b) Which company has a higher proportion of debt financing at the end of its
fiscal year? Of equity financing?
(c) Sears's year end is the last Saturday in January. Canadian Tire's year end
is the last Saturday in December. How might these differing year-end
dates affect your comparison in (b)?
The following items are from the liability and shareholders' equity sections of
WestJet Airlines Ltd.'s December 31, 2010, balance sheet (in thousands):
Accounts payable and accrued liabilities$303,583
Advance ticket sales 308,022
Current portion of long-term debt 183,789
Future income tax (long-term) 337,410
Long-term debt 866,745
Other current liabilities 36,778
Other long-term liabilities 18,838
Other shareholders' equity items 52,064
2 Retained earnings 807,978
Share capital 647,637
(a) Identify the balance sheet (statement of financial position) category in
which each of the above items should be classified.
(b) Prepare the liabilities and equity sections of the balance sheet.
(c) If you completed P2-3A, compare the total assets in P2-3A with the total
liabilities and shareholders' equity in P2-4A. Do these two amounts agree?
The following items are from the assets section of Reitmans (Canada)
Limited's January 30, 2010, balance sheet (in thousands):
Accounts receivable $ 2,926
Accumulated amortization—software 7,108
Accumulated depreciation—buildings and improvements 19,499