case memo assignment

I need an explanation for this Accounting question to help me study.

Instructions:

Prepare a memo addressing the issues presented in the case.The format of your memo should be structured as follows:

1.Identification of your role and the key objectives as identified by the person requesting the memo.

  • Analysis of the purchase of the new plane.
    • Journal entry for the initial purchase of the plane on January 1st
    • Journal entry to record the first year of depreciation of the plane.
  • Analysis of each of the financing alternatives.
    • Long-term loan
      • Pros, cons (brief)
      • Journal entry for receipt of the loan on January 1st
      • Journal entry for December 31st
    • Issue bonds
      • Pros, cons (brief)
      • Journal entry for the issue of the bonds on January 1st
      • Journal entries for the first two interest payments
    • Issue common shares
      • Pros, cons (brief)
      • Journal entry for the issuance of the common shares on January 1st
      • Journal entry for the dividend declaration, assuming that it does, in fact, get declared.

4.Conclusion – Provide a recommendation based on your analysis and the key objectives identified by the person requesting your advice.

Notes:

  • Be sure to include any calculations used to determine the journal entries (ie. show your work).
  • Your memo is not to exceed three pages, including journal entries and calculations.Anything beyond three pages will not be reviewed/marked.
  • Written text is to be single-space, Arial or Times New Roman font, 12-point.

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