EX 2-1 Chart of accounts

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

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 Inventories

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 stockholders’ equity. For each income statement account, identify it as a revenue or an expense.

Answer:

Balance Sheet Accounts Income Statement Accounts 

Assets  Revenue 

Advanced Payments for Equipment

a 

Cargo Revenue 

Cash Passenger Revenue 

Flight Equipment 

Fuel Inventory 

Parts and Supplies Inventories 

Prepaid Expenses 

Liabilities 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)

e

Passenger Commissions (Expense)

f

None 

Stockholders’ Equity 

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