The following items are from the liability and shareholders’ equity sections of WestJet Airlines Ltd.’s December 31, 2010, (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
Retained earnings………………………………………………………..807,978
Share capital………………………………………………………………..647,637
Instructions
(a) Identify the (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?
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