SAMPLE ACCOUNTING ISSUES MEMO Memorandum To: Flyaway.com accounting files From: Student Name Date: X/X/XXXX Re: Gross or Net Reporting of Online Ticket Sales Revenues Background Flyaway.com (“Flyaway” or the “Company”) sells airline tickets to customers through an online platform, where customers can choose the airline of their choice. Once a customer purchases a ticket, Flyaway remits payment for the travel to the airline and retains a commission (roughly 10% of the ticket’s value). The airlines set all ticket prices. If a flight is canceled, the airline must refund the customer. On the other hand, if the customer’s payment is invalid, Flyaway.com assumes credit risk.
Management Report for T&H Airlines Executive Summary T&H is a domestic airline that until now has been self-insured. Current Company CFO, Bill Albertson, is studying the best option in terms of insurance for the company, to minimize risk at the lowest possible cost. To analyze this issue a simulation model for T&H Airlines was developed using the company data and the industry information. Two quotes were presented and considered by the company CFO. Quote number one has a premium of 150% of actual losses and a minimum and maximum of $5 and $12 per 1,000 insured, while policy two has a premium of 100% of actual losses and a minimum and maximum of $6 and $9 per 1,000 insured.
Aircraft Purchase Agreement Aircraft Purchase Agreement dated as of September 9, 2015 and between Fly-by-Night Aviation, Inc., a New York Corporation (the “Seller”), and The Robertson Jet Corp., a Delaware corporation (the “Buyer”). WHEREAS, the Seller desires to assign all of its rights in a Purchase Offer of $21,000,000 for a aircraft with Sam Samson to the Buyer and delegate the Seller’s performance to the Buyer, which would assume the Seller’s performance under the Purchase Offer and contemporaneously pay the Seller $1,000,000; NOW, THEREFORE, in consideration of the mutual promises herein set forth and subject to the terms and conditions hereof, the parties agree as follows: Article 1. Definition 1.1 Defintions. As used in this Agreement, the following terms shall have the meanings set forth below: (a) “Aircraft” shall mean Icarus Aerospace Corporation I-800 aircraft, bearing United States Registration No. N765BW and Manufacturer’s Serial No.
AIRCRAFT PURCHASE AGREEMENT AIRCRAFT PURCHASE AGREEMENT dated November 5, 2013, between Supersonic Wings Corp., a Delaware corporation (the "Seller"), and Fly-by-Night Aviation, Inc., a New York corporation (the "Buyer"). WHEREAS, the Seller desires to sell to the Buyer, and the Buyer desires to purchase from the Seller, the Aircraft (as defined in Section 1.1); This Agreement provides for the sale of the Seller’s Gulfstream Aerospace Corporation G550 jet to the Buyer. Accordingly, the parties agree as follows: Article 1. Definitions 1.1 Defined Terms. As used in this Agreement, terms defined in the preamble of this Agreement have their assigned meanings, and the following terms have the meanings set forth below: "Agreement" means this Aircraft Purchase Agreement and all Schedules and Exhibits, as each may be amended from time to time.
There are currently 378 airports that service commercial flights in the United States and only one is privately operated, which is located in Branson, Missouri. Statistical data from 2005 reported 96.5% of the total passenger traffic in the United States flew from 138 airports. The Branson, Missouri airport opened in May 2009 and is the only privately owned, privately operated commercial
Tuxedo Air builds aircraft to order. By using prefabricated parts, the organization can complete the manufacture of an airplane in only five weeks. The organization also receives a deposit on each order, as well as another partial payment before the order is complete. In contrast, a commercial airplane may take one and one-half to two years to manufacture once the order is placed. Mark and Jack have provided the following financial statements.
B: Identify each as an Asset, Liability, Owner’s Equity, Revenue or Expense Account. • Accounts Payable ___balance sheet_ liabilities___________ _______________ • Air Traffic Liability __balance sheet______liabilities_______________ • Aircraft Fuel Expense ___income statement __expense________ • Cargo and Mail Revenue ___income statement ___revenue • Commissions Expense income statement ___expense • Flight Equipment _balance sheet ______assets • Landing Fees Expense __income statement __expense • Passenger Revenue ___income statement _ ___revenue • Purchase Deposits for Flight Equipment _______________ _______________ • Spare Parts Supplies __balance sheet_____________ ___assets_____ Ex. 2-5: During the month, Gates Labs Co. has a substantial number of transactions affecting each of the following accounts. State for each account whether it is likely to have (a) debit entries ONLY, (b) credit entries ONLY or (c) both debit and credit. • Accounts Payable __B________ • Accounts Receivable ___A_______ • Cash ____A______ • Fees Earned _____B_____ • Insurance Expense
Group Case Write-Up: American Airlines What is “Value Pricing” and why did AA introduce it? Value based pricing is a business strategy that sets prices primarily on the perceived value of the good or service to the customer, rather than on the actual cost of the good or service, the market price, competitors price, or the historical price. American Airlines’ value pricing has three key points that compromise the new plan, which are the following: 1) 4 four different fare prices for a given flight (first class, regular coach, 7-day advanced purchased discount coach, and 21-Day advanced purchased discount coach); 2) prices are based on mileage; and 3) lower prices would be available to more business and leisure travelers due to the fact that the new fares were set below the levels of the comparable existing fares. American Airlines introduced value pricing for several reasons. The first major reason was the nature of the airline industry.
In this assignment I will be identifying my qualifications, experiences, skills and attributes. I will be focusing on my career development. I will be producing an honest and realistic audit of my aspirations for a career in the aviation industry. Qualifications. When at secondary school I started my GCSE’S when I was in year 10, I did two years of GCSES’S to obtain academic qualifications.
Once a trainee has scored a 70 or above on the Air Traffic Standardized Aptitude Test, which is a test that is designed to evaluate one’s ability to learn how to be an air traffic controller, they have a chance to be place in the referral list. If the test was scored 70 to 84.9, they are deemed qualified. If the test has a score of 85 and above, they are deemed as well-qualified. The FAA obviously goes through the well-qualified list first. Once a trainee is on the referral list, there are two routes that they can take: the expedited route (at a PEPC (a pre-employment processing center) or the traditional route (at some local facility).