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ADM1340 (195)

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ADM 1340 M & P INTRODUCTORY FINANCIAL ACCOUNTING Tutorial 1 P1-4A The following accounts have been selected from the financial statements of Maple Leaf Foods Inc.: (a) (b) Accounts payable and accrued charges Accounts receivable Cash Common shares Cost of goods sold Interest expense Inventories Long-term debt Property and equipment Sales Selling, general, and administrative expenses Instructions (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. 1 P1-6A 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 $ [1] $7,784 Total liabilities 1,754 [4] Total shareholders' equity 1,483 3,565 End of year Total assets 3,405 [5] Total liabilities [2] 5,102 Total shareholders' equity 1,658 [6] Changes during year in shareholders' equity Issue of shares 0 5 Dividends 0 69 Total revenues 5,201 8,687 Total expenses [3] 8,352 Other decreases in shareholders' equity 60 148 Instructions (a) Determine the missing amounts for [1] to [6]. (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)? P2-4A 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 Instructions (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? P2-3B 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 Accumulated depreciation—fix
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