Chart of AccountsThe following accounts appeared in recent financial statements of Delta Air Lines. 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.ItemFinancial StatementType of AccountAccounts Payable  Advanced Payments for Equipment  Air Traffic Liability  Aircraft Fuel (Expense)  Aircraft Maintenance (Expense)  Aircraft Rent (Expense)  Cargo Revenue  Cash  Contract Carrier Arrangements (Expense)  Flight Equipment  Frequent Flyer (Obligations)  Fuel Inventory  Landing Fees (Expense)  Parts and Supplies Inventories  Passenger Commissions (Expense)  Passenger Revenue  Prepaid Expenses  Taxes Payable     Check My Work

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Asked Mar 8, 2020
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  1. Chart of Accounts

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

    Item Financial Statement Type of Account
    Accounts Payable    
    Advanced Payments for Equipment    
    Air Traffic Liability    
    Aircraft Fuel (Expense)    
    Aircraft Maintenance (Expense)    
    Aircraft Rent (Expense)    
    Cargo Revenue    
    Cash    
    Contract Carrier Arrangements (Expense)    
    Flight Equipment    
    Frequent Flyer (Obligations)    
    Fuel Inventory    
    Landing Fees (Expense)    
    Parts and Supplies Inventories    
    Passenger Commissions (Expense)    
    Passenger Revenue    
    Prepaid Expenses    
    Taxes Payable    
  2.  
  3.  
  4.  
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Expert Answer

Step 1

Balance sheet: Balance sheet is a financial statement that shows the available assets (owner’s equity and outsider’s equity) and owed liabilities from investing and financial activities of a company. This statement reveals the financial health of company. So, this statement is also called as Statement of Financial Position. It helps the users to know the creditworthiness of a company as to whether the company has enough assets to pay off its liabilities. The main components of balance sheet are assets, liabilities, and stockholders’ equity.

Income statement: Income statement is a financial statement which reports revenues, and expenses from business operations, and the result of those operations as net income or net loss for a particular time period is referred to as income statement.

Step 2

To identify: Whether each of the following account is either a balance sheet or an income statement, and to identify for each balance sheet account, whether it is an asset, a liability, owner’s equity, and for each income statement account, whether it is a revenu...

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