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Unformatted text preview: 3. In this particular transaction, the $500 dollars used by the customer to purchase the ticket in advance would be debited to the cash account and also credited to the air traffic liability account. When the revenue is earned by transporting the passenger, the air traffic liability account is decreased and the revenues are increased. 4. The only economic event that may occur and cause Southwest Airlines to reduce its air traffic liability when transportation is actually provided. This event would be concluded as an internal event because in this instance, what provides the transportation are the planes and the planes are equipments used....
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This note was uploaded on 01/26/2012 for the course BUSINESS Accounting taught by Professor N/a during the Spring '11 term at Kaplan University.
- Spring '11
- Balance Sheet