MIUIT WOULU Lause an increase in Total Assets. C. The transaction would cause an increase in Earnings per Share. d. All of the above. United Airlines, Inc.'s footnotes provide the following disclosures regarding revenue recognition related to ticket sales. Use this information to answer the next two questions, The Company initially records ticket sales in its Unearned Revenue liability account, deferring revenue recognition until the travel occurs. For travel that has more than one flight segment, the Company deems each segment as a separate performance obligation and recognizes revenue for each segment as travel occurs. Thus, the Unearned Revenue account represents the Company's liability to provide air transportation in the future. All tickets sold at any given point of time have travel dates extending up to twelve months. As a result, the balance of the Company's Unearned Revenue liability for advance ticket sales represents activity that will be recognized in the next twelve months. The following table summaries advance ticket sales activity for fiscal 2018 (in millions): Unearned Revenue related to advance ticket sales, January 1, 2018 Cash received from ticket sales during 2018 Ticket sales revenue recognized during 2018 Unearned Revenue related to advance ticket sales, December 31, 2018 $ 3,940 37.706 (37,265) $ 4,381 5.) United Airlines made the following journal entry related to cash received for future tickets during fiscal 2018 (for simplicity, assume all customers paid cash for their tickets): no 02 a. Debit 'Prepaid Ticket Expenses' and credit 'Sales' for $4,381 million. b. Debit 'Cash' and credit 'Sales' for $37,265 million. C. Debit Cash' and credit 'Unearned Revenue' for $37,706 million. d. Debit 'Unearned Revenue' and credit 'Sales' for $37.706 million. ( 6.United Airlines made the following journal entry to recognize revenue related to these ticket sales during fiscal 2018: a. Debit 'Unearned Revenue' and credit 'Sales' for $37,265 million. b. Debit 'Cash' and credit 'Unearned Revenue' for $37,265 million. C. Debit 'Sales' and credit 'Unearned Revenue' for $4,381 million. d. Debit 'Unearned Revenue' and credit 'Sales' for $4,381 million. Page 2 of 9