Assignment: Jet Blue Revenue Recognition
I. Explain in your own words the steps Jet Blue should apply in recognizing revenue? Provide citation from the codification 606.
II. What are Jet Blue's source of revenue?
III. Explain in your own words what we mean by a performance obligation. Provide citation from the codification.
IV. What are Jet Blue's performance obligation in the case?
V. Are these performance obligation "distinct"? Explain in your own words and provide citation from the codification.
VI. Explain in your own words what differences it makes if performance obligations are distinct?
VII. How should Jet Blue allocate total revenue to the various performance obligations mentioned in the case? Explain in your own words and provide citations from the codification.
VIII. How should Jet Blue account for "upfront ticket purchases and payments"? Explain in your own words and provide citation from the codification. Provide journal entries to record payment and revenue recognition.
IX. For each performance obligation in the case, should Jet Blue account for the revenue over time or at a point in time? Explain in your own words and provide citation from the codification.
X. How should Jet Blue account for revenue from its frequent flyer programs? Explain in your own words and provide citation from codification. Provide journal entries.
XI. Explain in your own words how Jet Blue should account for total fees and fees received from changing flight reservations? Provide citation from the codification.
Format your assignment according to the following formatting requirements:
o The answer should be typed, using Times New Roman font (size 12), double spaced, with one-inch margins on all sides.
o The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
o Also include a reference page. The Citations and references must follow APA format. The reference page is not included in the required page length.