PepsiCo's financial statements are presented in Appendix B. Financial statements of The Coca-
Cola Company are presented in Appendix C. Instructions for accessing and using the complete annual reports of PepsiCo and Coca-Cola, including the notes to the financial statements, are also provided in Appendices B and C, respectively.
Instructions
(a) Based on the information contained in the financial statements, determine the normal balance of the listed accounts for each company.
PepsiCo Coca-Cola
1. Inventory...............................................1. Accounts Receivable
2. Property, Plant, and Equipment.............2. Cash and Cash Equivalents
3. Accounts Payable..........................3. Cost of Goods Sold (expense)
4. Interest Expense.............................................4. Sales (revenue)
(b) Identify the other account ordinarily involved when:
(1) Accounts Receivable is increased.
(2) Salaries and Wages Payable is decreased.
(3) Property, Plant, and Equipment is increased.
(4) Interest Expense is increased.