The financial statements of Apple Inc. in Appendix A at the back of this textbook contain the following selected accounts, all in thousands of dollars.

Instructions

(a) What is the increase and decrease side for each account? What is the normal balance for each account?

(b) Identify the probable other account in the transaction and the effect on that account when:
(1) Accounts Receivable is decreased.
(2) Accounts Payable is decreased.
(3) Inventories is increased.

(c) Identify the other account(s) that ordinarily would be involved when:
(1) Interest Expense is increased.
(2) Property, Plant, and Equipment is increased.

Transcribed Image Text:

Common Stock Accounts Payable Accounts Receivable Selling, General, and Administrative Expenses Inventories Net Property, Plant, and Equipment Net Sales $ 23,313 30,196 17,460 11,993 2,111 20,624 182,795