Accounts Payable
Flight Equipment
Advanced Payments for Equipment
Frequent Flyer (Obligations)
Air Traffic Liability
Fuel Inventory
Aircraft Fuel (Expense)
Landing Fees (Expense)
Aircraft Maintenance (Expense)
Parts and Supplies
Aircraft Rent (Expense)
Passenger Commissions (Expense)
Cargo Revenue
Passenger Revenue
Cash
Prepaid Expenses
Contract Carrier Arrangements (Expense)
Taxes Payable
Identify each account as either a balance sheet account or an income statement account. For each balance sheet account, identify it as an asset, a liability, or owner’s equity. For each income statement account, identify it as a revenue or an expense.
Answer:
Advanced Payments for Equipment
a
Cargo Revenue
CashPassenger Revenue
Flight Equipment
Fuel Inventory
Parts and Supplies
Prepaid Expenses
Accounts Payable Aircraft Fuel (Expense)
Air Traffic Liability
b
Aircraft Maintenance (Expense)
Frequent Flyer (Obligations)
c
Aircraft Rent (Expense)
Taxes Payable Contract Carrier Arrangements (Expense)
Landing Fees (Expense)
Passenger Commissions (Expense)
Advance payments (deposits) on aircraft to be delivered in the future
Passenger ticket sales for future flights
Obligations to provide frequent flyers future travel and other benefits
Payments to other airlines for passenger travel under Delta tickets
Fees paid to airports for landing rights
Commissions paid to travel agents for passenger bookings