Question

The following accounts appeared in recent financial statements of Delta Air Lines:

Accounts Payable	Fuel Inventory
Accounts Receivable	Landing Fees (Expense)
Accrued Salaries (Obligations)	Loyalty Program (Obligations)
Aircraft Fuel (Expense)	Parts and Supplies
Aircraft Maintenance (Expense)	Passenger Commissions (Expense)
Aircraft Rent (Expense)	Passenger Revenue
Air Traffic Liability	Prepaid Expenses
Cargo Revenue	Property and Equipment
Cash	Regional Carriers Expense

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 1

ANSWER

Accounts Payable BALANCE SHEET LIABILITY

Accounts Receivable BALANCE SHEET ASSET

Accrued Salaries (Obligations) BALANCE SHEET LIABILITY

Aircraft Fuel (Expense) INCOME STATEMENT EXPENSE

Aircraft Maintenance (Expense) INCOME STATEMENT EXPENSE

Aircraft Rent (Expense)   INCOME STATEMENT EXPENSE

Air Traffic Liability BALANCE SHEET LIABILITY

Cargo Revenue   INCOME STATEMENT REVENUE

Cash BALANCE SHEET ASSET

Fuel Inventory BALANCE SHEET ASSET

Landing Fees (Expense)   INCOME STATEMENT EXPENSE

Loyalty Program (Obligations) BALANCE SHEET LIABILITY

Parts and Supplies BALANCE SHEET ASSET

Passenger Commissions (Expense) INCOME STATEMENT EXPENSE

Passenger Revenue INCOME STATEMENT REVENUE

Prepaid Expenses   INCOME STATEMENT EXPENSE

Property and Equipment BALANCE SHEET ASSET

Regional Carriers Expense   INCOME STATEMENT EXPENSE