Alaska Airlines showed the following items inits balance sheet as of December 31, 2011, the end of the fiscal year ($ inmillions):A footnote stated, Passenger revenue is recognized when the passenger travels. Ticketssold but not yet used are reported as air traffic liability.The 2011 income statement included the following ($ in millions):Passenger revenues $3,950.7Wages and benefits expense 990.5Required:Analyze the impact of the following assumed 2012 transactions on the financialposition of Alaska.Prepare your analysis in the same format used when the adjustment process wasexplained in the text. Also show adjusting journal entries.Inventories and supplies $ 44.3Prepaid expenses and other current assets 93.0Air traffic liability 489.4Accrued wages, vacation, and payroll taxes 163.8

a. Rented sales offices for 1 year, beginning September 1, 2012, for $9 millioncash.b. On December 31, 2012, an adjustment was made for the rent in requirement(a).c. Sold 20 charter flights to Apple Computer for $250,000 each. Cash of $5million was received in advance on November 20, 2012. The flights were fortransporting marketing personnel to business conventions.d. As the financial statements were being prepared on December 31, 2012,accountants for both Alaska and Apple Computer independently noted thatthe first 6 charter flights had occurred in December. The rest will occur in early2013. An adjustment was made on December 31.e. Alaska loaned $30 million to Boeing. Interest of $1.8 million was accruedon December 31.f. Additional wages of $35 million were accrued on December 31.2. At year-end, before the adjustments for the transactions described in parts(c) and (d) of number 1, the company had $378 million in the Air Traffic Liabilityaccount related to collections in advance for flights scheduled in 2013.Compute the proper year-end balance in the Air Traffic Liability account as ofDecember 31, 2012