`` Always Running By Luis Rodriguez - 1350 Words

Prior to being assigned the reading of the memoir â€Å"Always Running†, by Luis Rodriguez, I had never given much thought on juveniles involved in gang life. Rodriguez achieved success as an award-winning poet; sure the streets would no longer haunt him - until his own son joined a gang. Rodriguez fought for his child by telling his own story in the vivid memoir, â€Å"Always Running.† â€Å"Always Running† is the compilation of events Luis experienced during his youth in San Gabriel. The theme of the book is to always strive for the best things in life and to always take a stand for what you believe. Lured by the seemingly invincible gang culture of East L.A., he witnessed countless shootings and beatings, as well as senseless acts of street crime against his friends and family members. As a Latino in a poor neighborhood, Luis struggled through criticism, stereotypes, and mistreatment. With the help of his mentor, Chente, Luis saw a way out through education a nd the power of word to successfully break free from years of violence and desperation. Luis was growing up into the life of gang banging, gaining a reputation in San Gabriel by being scouted into bigger gangs in the area. Increasing his involvement in the gang by stealing form stores, to eventually being part of premeditated arson and murders. Luis was well on his way to a life in prison or worse, death. By growing up during a time of racial discrimination, options were limited to becoming a factory worker or gangster. Luis metShow MoreRelated`` Always Running, Luis J. Rodriguez1454 Words   |  6 PagesIn Always Running, Luis J. Rodriguez recalls his time growing up in Los Angeles during the 60s and 70s. Rodriguez writes of the hardships that his family had first encountered while trying to assimilate into American society and how he would often, while growing up, be criminalized by his teachers, law enforcement, other people, his peers, his community, and eventually people who cared most for him. Rodriguez recalls the times where he and some friends came together an d created a family, a brotherhoodRead MoreFamily Dysfunction, Breeding Future Gang Members1252 Words   |  6 Pagesas a minority with a dysfunctional family setting aide or contribute to joining a gang, therefore continuing the cycle of gang violence and activity? In order to dive deeper into this subject, several references from the internet and Always Running by Luis J. Rodriguez will be stated and discussed. After the discussion of the web articles and passages from the book a solution will be suggested to help the misguided youth of America to make better life decisions than just throwing their lives away asRead MoreHunger of Memory, by Richard Rodriguez1459 Words   |  6 PagesWhen the languages and culture are different, translation has to be used in deferent ways or methods to decrease misunderstandings and create better way to communicate with others. language seem to be essential topics that motivate Richard Rodriguez, Luis Rodriguez, Sandra Cineros, Victor Villasenor, and Avtavio Paz to write their experiences starting from early periods of their childhood and ending with the fame and the glory they make to reach to the highest levels of success. Despite the contrastRead MoreAnalysis Of Luis Rodriguezs La Vida Loca1265 Words   |  6 Pagesgangsters live by to gangbang, to create havoc, to live life on the edge. Luis Rodriguez, author of â€Å"La Vida Loca: Two Generations of Gang Members†, is writing about his and his son’s gangbanging experiences. Rodriguez migrated from Mexico to Los Angeles at the age of 2, by the age of 12 he had built silence within his body and wanted nothing but bring fear to others as he felt fear all his life. By the age of 15 Rodriguez had dropped out of school, at age 18 he had experienced 25 friends’ deathsRead MoreAlways Running : La Vida Loca807 Words   |  4 PagesAlways Running: La Vida Loca: Gang Days in L.A. Analysis By Gillian Husack Introduction Always Running is, essentially, a detailed memoir by Luis Rodriguez. Moreover, the author describes his sordid past as a gang member in Los Angeles during the 1960 s. As a consequence of residing in a gang, Rodriguez became involved in spontaneous acts of violence; for instance, accounts included rape, drug peddling, shootings, and multiple other reasons for arrests. But, the deciding factor that had made himRead MoreSummary Of There Running, La Vida Loca By Luis J. Rodriguez Essay1709 Words   |  7 Pagesand those who have nothing and those in the middle. In Always Running, La Vida Loca: Gang Days in L.A. by Luis J. Rodriguez, we hear from an outcast of society, a young man so far removed from the opportunity this country promises. Rodriguez spent his formative years living a life of crime, drugs, and sex, completely on the margins of society, not out of choice but out of necessity to survive, being left with limited options. Rodriguez is the tale of many other young Mexican American boys inRead MoreSegregation, By Luis J. Rodriguez1423 Words   |  6 Pagesform of segregation such as: the amount of damaged properties, isolation of the underclass, poverty rising in these areas, the conditions of the city, the lack of retail stores, and employment. Always Running, a memoir by Luis J. Rodriguez, shows different aspects of marginalization through the school s Luis attended, the jobs he sustained, and the neighborhoods he resided . No one should feel as if they are underclass or that they cannot achieve what a superior race can achieve. These segregatedRead MoreCauses Of Gangs1461 Words   |  6 Pagesfear of being left out their acts will be easier to fulfill. Due to this, many people will fall into peer pressure and give in to what others do in order for them to fit in with a group. For example, in Always Running, Rodriguez states, â€Å"All of a sudden every dude had to claim a clique† (Rodriguez 41). This is a prime example of how the dudes either had to be in a gang or be left out and be targeted. With that in mind, they had to do what others do to fit in. These days society, most commonly theRead MoreThe Psychological Effects Of Adolescent Substance Abuse1469 Words   |  6 Pagesyouth alcohol abuse. Summary Response: The book â€Å"Always Running: La Vida Loca† begins with Rodriguez recounting where his family came from, and what they used to do. He talks about his childhood and how it was very unstable because of constantly moving. Luis then talks about how he and his friends formed a gang called the â€Å"Impersonators.† Eventually Luis and his gang attempt to hold up a drive-in movie theater at gunpoint, after which Luis is arrested. Luis then describes a flirt with various forms ofRead MoreJustice, Masculinity, And Race And Crime Essay1370 Words   |  6 Pagescitizens. Another work that I have personally read myself and found to have similar characteristics is Always Running: La Vida Loca: Gang Days in L.A by Luis J Rodriguez. Like Punished, Always Running is a book about a young Chicano gang member trying to survive the dangerous streets of East Los Angeles, he has witnessed gang violence, shootings, arrests all at a young age. Before long, the young boy Rod riguez saw a way out of the barrio through education and the power of words and successfully broke free

Gender And The Early Developmental Stages Of An Adolescent...

â€Å"Gender† is a social construct that is developed solely by our society and the early developmental stages of an adolescent’s life. By introducing youths to the roles, behaviors, expectations and activities that correspond with males or females we give a clear guideline of what is accepted from a young male or female. An individual however can identify his or her gender based on their own system of beliefs without corresponding to their natural biological sex. Our lives are shaped by our true biological identities but the influence of the world and society is enough to define what a male and what a female truly is to an individual. Gender undeniable relates to the traits of masculinity and femininity. The term gender is more formally known as â€Å"The Category to which an individual is assigned by self or others on the basis of sex† (Nordquist) An individual is able to choose his or her gender because it is a mean of self-identification. Germaine Geer is able to state it quite simply by saying â€Å"Masculinity is to maleness as femininity is to femaleness†¦..maleness is the natural condition, the sex if you like, and masculinity is the cultural construct, the gender† (Greer). The natural condition or sex is defined as being male or being female, something that remains constant unless surgical or hormonal intervention occurs. In Christian Nordqvists study he defines sex as â€Å"The biologic character or quality that distinguishes male and female from one another as expressed by analysisShow MoreRelatedChild Development Theories1324 Words   |  6 PagesChild Developmental Theories Ashford University PSY 104 Child and Adolescent Psychology June 29, 2009 Child Developmental Theories While theorists have different ideas and perspectives, insight on child and adolescent development can assist teachers and parents in helping children reach their full developmental and learning potential. Having knowledge about the developmentRead MoreA Stress And Coping Theory Proposed That Stress From Social And Environmental Factors1308 Words   |  6 Pagesadequate coping skills, they are unable to deal with the stress (Starr Hammen 2016). Neurobiological processes such as brain development was suggested as a risk factor for depression development in romantically involved, early adolescent girls. Early, adolescent girl’s brains are still developing so they do not have the required skills to self-regulate (limit the extent you are affected) romantic relationship stress (Sowell et al., 1999; Larson Clore Wood). Caspi et al. (2003) stated thatRead MoreChildhood Obesity and Its Effect1260 Words   |  6 Pagescause some undesirable internal feelings within children and adolescents who suffer from it. Self-esteem, or self-worth, is important as it helps develop personality and is a major ingredient to our mental health status (Wang, F. and Veugelers, P. J., 2008). Some have said obesity may even have a negative effect on cognitive development, as well. There have been studies performed to research the effects of obesity on children and adolescents, which I am going to review. First, let me discuss someRead MoreLifespan Development945 Words   |  4 PagesGrowth and behavior * Personality- Stability and change * Social- interaction and relationships grow * Cultural factors and developmental diversity * Broad factors * Orientation toward individualism or collectivism * Finer differences * Ethnicity * Race * Socioeconomic Race * Gender * Korosol increase stress * Cohort- group of people born at around the same time in the same place * Age graded influences-Read MoreAdolescent Self-Portrait Essay1647 Words   |  7 PagesAdolescent Self-Portrait December 1, 2014 BSHS/325 Maria Perrotta Adolescent Self-Portrait From the time an individual is born, they are facing continual growth and changes. Upon reaching adolescence, an individual will face many changes quickly that affect feelings and personality. Males and females face the same milestones, yet, are affected and changed by them differently. What It Feels Like To Be a Teenager Being a teenager is an exciting, scary, and overall stressfulRead MoreErik Erikson s Development Theory1603 Words   |  7 Pagespopular and applicable to many people. However, Erikson’s theory was a bit bias and generalized groups of people whose cultures, genders and environments did not apply to his theory. This paper will focus on Erikson’s last four stages of development, and discuss how each stage may be impacted by these various factors. Identity vs. Role Confusion The adolescence stage of development in Erikson’s theory was labeled as identity vs. role confusion. Teenagers begin developing a sense of who they areRead MoreThe Importance Of Early Childhood Friendship1267 Words   |  6 PagesFriendship is often underrated, considering the tremendous impact it has on our well being. Early-childhood friendship is something that is frequently overlooked as a positive developmental influence. Preschool friendships are helpful in developing social and emotional skills, increasing a sense of belonging and decreasing stress. People who feel lonely or socially isolated tend to be more depressed and have more health issues. Both boys and girls form strong attachments to others need social andRead MoreThe Importance Of Early Childhood Friendship1416 Words   |  6 PagesFriendship is often diminished, considering the tremendous impact it has on our well being. Early-childhood friendship is something that is frequently overlooked as a positive d evelopmental influence. Preschool friendships are helpful in developing social and emotional skills, increasing a sense of belonging and decreasing stress. People who feel lonely or socially isolated tend to be more depressed and have more health issues. Both boys and girls form strong attachments to others need social andRead MoreThe Effects Of Midlife Psychosocial Development On Cognitive And Emotional Health1331 Words   |  6 PagesDirected Assignment A4: Review Research 1. Why did you pick this article? I find this journal article interesting as it discussed the consequences of midlife psychosocial development in relation to late-life cognitive and emotional health. It is relevant in my age group particularly in my husband’s case who is in his mid-thirties. Although I have been aware of the implications of certain psychosocial factors in someone’s well-being, I wanted to know the other aspects of midlife psychosocial developmentRead MoreExposure to Gender Based Violence and Its Influence on Bullying Behavior919 Words   |  4 PagesThis work will not aid in placing programs to support or prevent exposure to gender based violence and its influences on bullying behavior at Belmopan Comprehensive High School. This study will not identify a student by name that displays: ïÆ'Ëœ The highest level of exposure on Gender Based violence at home or school. ïÆ'Ëœ The effects of the exposure to violence at home. ïÆ'Ëœ The student’s collaborative academic work performance in his or her classroom. Also, this study will not reveal the methods used

Just in Time Concept Free Essays

string(84) " takes place over a period of time, into artificial segments \(reporting periods\)\." Financial AccountingS. Das Income Measurement and Accrual Accounting Recognition and Measurement in Financial Statements DEFINITIONS Revenues:inflows of assets or reductions in liabilities from selling goods and services Expenses:outflows of assets or increases in liabilities used up in generating revenues. Recognitionformal recording of an item in financial statements, in words and numbers Measurementquantify the effects of economic events numbers unit is money – dollars historical cost – recorded for simplicity, verifiability, reliability Current cost-relevant but less reliable Only an esti mate until item is sold Net income= Revenues-Expenses. We will write a custom essay sample on Just in Time Concept or any similar topic only for you Order Now Incomeamount of resources available for consumption at the end of a period and yet be as well off as it was at the beginning of the period. CASH BASIS Versus ACCRUAL ACCOUNTING So if we DEFINE PERIOD to be lifetime of a firm (which can only be defined for a firm with a finite life) then we are only interested in the earnings of a firm over its lifetime. In that case: a. just wait until the firm dissolves. b. Add up all the cash inflows over its lifetime other than those for sale of own stock. c. Add up the cash outflows over its lifetime other those for stock repurchase or dividends. d. Find the difference between cash inflows and outflows and YOU HAVE NET INCOME. e. THE ABOVE IS ALWAYS TRUE. However, if you DEFINE PERIOD TO BE ANY INTERVAL SMALLER THAN THE LIFE TIME when you wish to get information on earnings as intermediate feedback, then there is the following problem: -transactions may not be complete on a cash to cash basis – because the earnings process is continuous – Period1buy inventory for $5 Period2pay for inventory Period3sell and deliver inventory for $15 Period4receive payment from customer. KEY QuestionWhen should revenues and expenses be recognized? One possibility is the cash basis recognize revenues at time of receiving cash and recognize expenses at the time of paying cash. Example: A toy retailer starts business on January 1, 2000. The retailer Mr. XYZ pays two months rent in advance on his store for $2000. He also purchases and pays for toys worth $35,000. However, during the month of January, he sold no toys. During February, he sells all the toys he has for $45,000 but collects only $5000 of that in cash. He expects the neighborhood children to pay the remaining $40000 in March. JanFebruary Revenues—————– Less: Expenses Cost of toys—————– Rent—————- Total Expense—————- Income—————– Limitations of Cash basis 1. expenses are not aligned in time with the revenue that they produce. 2. recognition of revenue is unduly postponed. A Second possibility is the use of Accrual basis – depends upon when some critical event occurs. What happens to income (accrual basis) using same example? JanFebruary Revenues—————– Less: Expenses Cost of toys—————– Rent—————- Total Expense—————- Income—————– Comparing the Cash And Accrual Bases of Accounting -Basic difference one of timing Recognize Revenue whenRecognize Expense when Cash Basis cash is received cash is paid Accrual Basisrevenue is earned it is incurred Exhibit 4-2 transparency Accrualmatching of expenses with the corresponding revenues OR match resources used (expired assets- expenses)to generate revenue. The accrual concept forces accountants and managers to focus on changes in owner’s equity rather than merely reporting changes to the cash or other assets. The realization concept underlies the decision rules that accountants use in determining when revenues should be recognized and expenses matched to them. The Revenue Recognition Principle Revenue:Increase in Asset Or Decrease in Liability from Delivery of Goods Or Services Realized:Goods Or Services Exchanged for Cash Or Promise of Cash . Earned:Revenue earned when realization is complete or no significant obligations left How are Revenues recorded? †¢At the same time as cash is collected. †¢Before the time cash is collected. †¢After the time cash is collected. Possible Interpretations of Recognition Principle: Percentage of Completion:For long term projects, revenue recognized as stages are completed, based upon proportion of total cost incurred, Franchises: Initial fee recognized as revenue only FAS 45 â€Å"substantial performance† of its obligations BJ 32 Production MethodCommodities – Traded at established price; so revenue recognized when they are produced. Installment Method:opposite of production method: no reasonable basis to estimate collectability, so revenue on sale recognized as cash is collected Continuously:such as rent and interest The criteria used in accounting to decide the recognition of revenues is : †¢A firms has performed all, or a substantial portion, of the services it expects to provide. †¢The firm has received cash, a receivable, or some other asset whose cash equivalent it can objectively measure. Expense Recognition and the Matching Principle The matching concept relates revenues and expenses so that owner’s equity is neither overstated nor understated at any points in the steam of events that constitutes operations. Expensewhen an Asset Has No Future Benefit i. e. It Is Used Up [Or] a Liability Is Incurred. Matching:Associate Revenues with Costs (expenses) Necessary to Generate them UnexpiredSometimes not done with specific items of product sold, but with period in Assets which they were sold eg. sales clerks’ salaries are expensed in the period in which employees worked. Expired Some things never go through asset stage, since benefit is seen to expire as soon Assets as costs expended (purchased) = Period Costs; eg. utilities costs, telephone, fuel for vehicles (not asset) Two examples: 1. Expired asset versus 2. Expensing of benefits/ resources that never went through asset stage. A. Depreciation Expense estimated useful life and eventual salvage or resale value Manipulation to increase or decrease income Salvage deducted before calculating periodic expense because it is expected to be recovered and will remain an asset. B. Research ; DevelopmentDell Computer in its 1995 Annual Report list â€Å"Research, development and engineering† of $65,361,00 as operating expense on Income Statement. – an expense is an asset whose usefulness to the company is complete – it is deemed that R;D has no future benefit left hence out right expense without going through asset stage. For an accrual based company, Statement of Cash Flows provides information on Sources and Uses of Cash. Accrual basis necessary because we divide the earning of income, a process that takes place over a period of time, into artificial segments (reporting periods). You read "Just in Time Concept" in category "Papers" Example: In the 1995, Income Statement Maytag Corporation had a net loss of $20,476,000. Their Statement of Cash Flows showed an increase in cash equivalents of $30,811,000. Cash provided by operating activities was $319,979,000. How can a company with a net loss have a gain in cash? This is possible if expenses exceeded revenues since Income statement is on accrual basis. It contains revenue amounts that may not have been realized in cash (still in accounts receivable) and expenses that may not have been paid for such as depreciation, and unpaid purchases. Also look for income from continuing operations versus loss due to extraordinary items and disposal of existing business. (As was the case in Maytag 1995) Accrual Accounting and Adjusting Entries: at end of period – Four Types: 1. Deferred Expense: Cash Paid before Expense Is Incurred Asset created; as asset expires it becomes an expense, via adjusting entry Entry DuringAsset End of Expense period Cash period Asset eg. * prepaid rent becomes rent expense, a month at a time * Depreciation allocates cost of asset over its useful life – does not measure decline in value ? Based on estimates of salvage value and life of asset ?Periodic expense= [actual cost – est. salvage value]/estimated life ? debit is depreciation expense ?credit is not to asset account, which will always reflect cost, ? but to accumulated depreciation- contra account that is, an asset account with a credit balance 2. Deferred RevenueCash Received before Revenue Is Earned Liability Created Because Goods Or Services Still Owed EntryDuringCashEnd of Liability period Liability period Revenue ?Eg. unearned â€Å"the other company† from deferred expense entries ? for example, The landlord who received the prepaid rent has a deferred revenue ? liability is reduced, revenue increased, as time passes ?magazine subscriptions received in advance, earned as magazines mailed 3. Accrued LiabilityExpense incurred before Cash Is Paid Opposite of deferred expense EntryDuring-End of Expense period- period Liability Eg. taxes, payroll, utilities; interest for short term loan paid at maturity with principal 4. Accrued AssetRevenue Earned before Cash Is Received Opposite of deferred revenue EntryDuring-End of Asset period-periodRevenue ?both rent and interest are earned as time goes by, regardless of when cash received ? need adjusting entry if payment is not received. Exhibit 4-5 (text pp. 165) Example: P4-2 REVISITING THE ACCOUNTING CYCLE Steps taken to collect the necessary information to prepare financial statements (Exhibit 4-8) . Collect and Analyze 2. Journalize Events 3. Post to Ledger Accounts(Results in Unadjusted Trial Balance) 4. Journalize and Post adjustments(Results in Adjusted Trial Balance) 5. Prepare Financial Statements 6. Journalize and Post Closing Entries(Results in Post-Closing Trial Balance) 7. Post Closing Trial Balance 8. Optional: Reversing Entries The Closing Process: Two types of accounts: Balance Sheet= real accounts = permanent Income Statement= nominal accounts = temporary (Includes Dividend account) Purpose of closing entries:-Close temporary accounts -transfer net income (loss) to retained earnings Process of closing: Debit Each Revenue Account: Sum Up a Single Credit to Income Summary. Credit Each Expense Account, Sum Up a Single Debit to Income Summary. Debit Income Summary If It Has a Credit Balance (Company Had Net Income) ORCredit Income Summary If It Has a Debit Balance (Company Had Net Loss) Credit Dividend Account, Debit Retained Earnings Exhibit 4-9 (text pp. 171) Example 1:E4-23. Ben ; Jerry’s Example 2:Let us look at McDonald’s Corporation’s 1998 Statement of Income shown on Page 139 of your text. Notea. Retained Earnings at the beginning and end of 1998 were $12,569 and $13,879. million respectively. b. Total dividends paid to common and preferred shareholders were $239. 5 Use the numbers from the Income Statement to Reconstruct the relevant account balances. Then Close them to Income Summary and from there to Retained Earnings. EXAMPLE P4-10 Post-closing Trial Balance will only contain Balance Sheet accounts. When is a sale a sale? In an article concerning troubled MiniScribe Corporation (The Wall Street Journal September 12, 1989 – MiniScribe’s Investigators Determine That â€Å"Massive Fraud Was Perpetrated†. ) it was stated that â€Å" †¦ he company dramatically increased shipments to three warehouses, booking $56. 4 in sales and gross profit of $5. 4 million. † (Note that the warehouses being shipped to belonged to MiniScribe) The volume of shipments only called attention to the problem – it was not the problem. Problem is it is not Customer’s warehouse but MiniScribe’s – shipping goods to ones? own warehouse is not a sale – but a relocation of inventory – must be an arm’s length transaction. This was one among many violations – MiniScribe was also shipping bricks to an fictitious company, and recording them as sales revenue. 1. Claiming Tomorrow’s Profits Today, Forbes, October 17, 1988, p 78. Case 4-1:Ben ; Jerry’s Revenue Recognition – Initial Franchise Fee Footnote on 147 of text. FASB SFAS 45 allows franchisor to recognize initial franchise fee as revenue only when â€Å"substantial performance† of its obligations and when collection of the fee is reasonably assured. Revenue Recognition: The Company recognizes franchise fee as †¦.. when services required by the franchise agreement have been substantially performed†¦. 1. Consistent with SFAS 45. The footnote refers to certain mandatory services that the company promises to perform for the new stores. Performance of these services is the basis for recognizing the fee as revenue. Note that the footnote specifically uses the wording substantially performed. 2. The company recognizes the franchise fees as revenue in proportion to the stores for which the required services have been substantially performed. 3. Franchise fees are not large relative to net sales in any of the years. Franchise fees are less than 0. 4% of net sales in each of the three years. Unearned Revenue: Realizability Vs. Earned criteria – realized BUT has it been earned?. 1. Case 4-2:Gateway- Revenue Recognition Refer to page 30 of Gateway’s Annual Report, under â€Å"Summary of Significant Accounting Policies† 1. Gateway recognizes revenue from product sales when products are shipped. Revenue from separately priced extended warranty programs is deferred and recognized over the extended warranty period. 2. â€Å"Extended warranty programs† are contracts to service products for a period beyond the original warranty. These contracts are purchased for an additional amount above the product purchase price. . The revenue from the extended warranties is recognized over the warranty period because it is earned over the entire period, as coverage is provided. 2. Case 4-3: Sears, Roebuck, ; Company – Revenue from Service Contracts. 1. Under the accrual basis, revenue should be recognized when it is earned, rather than when cash is received. Since the retailer incurs costs to repair damages over the life of the service contract, the revenue from the contract is also earned over the life of the contract. 2. Revenue to be recognized each year: Year 1 Year 2Year 3 Sales Revenue Service Contract Total revenue Typically, for service contract you receive cash or payment, for future services, that creates a liability. Thus one has an unearned revenue account. In this particular example, the liability account would contain XXX at the end of year 1 and XX at the end of year 2 reported under current liability as unearned revenue on the balance sheet. Sears, Roebuck, ; Company 1998 Annual Report Footnotes to Revenue Recognition The Company sells extended service contracts with terms of coverage between 12 and 36 months. Revenue and incremental direct acquisition costs from the sale of these contracts are deferred and amortized over the lives of the contracts. Costs related to servicing the contracts are expensed as incurred. 3. American Airlines: 1996 total revenues of $17,753 million. Balance sheet reported ? Air traffic Liability? of $1,889 million. – unearned revenue (~~11%) from ticket sales. -when retired – Retired when ticket holders are provided transportation. -Refundability a factor -What if carrier cannot provide service due to strike or storm. -When is revenue earned ? – when ticket is bought when passenger boards – when plane takes off – when the round trip is complete. AMERICAN AIRLINES 1998 Annual Report (Summary of Significant Accounting Policies) (Note 1) PASSENGER REVENUES Passenger ticket sales are initially recorded as a component of air traffic liability. Revenue derived from ticket sales is recognized at the time transportation is provided. How ever, due to various factors, including the complex pricing structure and interline agreements throughout the industry, certain amounts are recognized in revenue using estimates regarding both the timing and the amount of revenue to be ecognized. Actual results could differ from those estimates. In 1998, American showed revenues of $17,449 million and recorded â€Å"Air traffic liability† of $2,163 million on its Balance Sheet. Time Warner Inc. According to Annual Report they publish 26 different magazines. At end of 19985 unearned subscription revenue was $741 million. -included in their is your paid subscription to Time for issues that you have yet to receive. -magazines are sold at different rates depending on how you subscribed and for how long. – how to keep track of when earned. when does the earnings process complete When subscription received – if main source of revenue is advertising. When production is complete and delivery is made. A combination of these two. Note that Time does not have difficulty to keep track since subscription price variations and customer records are all kept by computers – closely monitor the process from payment to through unearned revenue to delivery and revenue earned. Time Warner Inc. 1998 Annual Report (Note 1) The unearned portion of paid subscriptions is deferred until magazines are delivered to subscribers. Upon each delivery, a proportionate share of the gross subscription is included in revenues. E 4-81. AugustCash Subscriptions Received in advance (Unearned Revenue) To record collection of 900 subscriptions Assets =Liabilities+ Owner’s Equity 2. August 31. Unearned revenue Subscription revenue To record subscriptions earned during August. Assets=Liabilities+Owner’s Equity 3. Net income for the month of August would be under stated / overstated by XXX if the accountant forgot to make the entry to recognize revenue earned. (Self Note: Also see Magazine Subscription case) E 4 -9 How to cite Just in Time Concept, Essays