The financial statements of Apple Inc. in Appendix A 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 eff ect 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 $ 35,867 49,049 17,874 15,261 4,855 33,783 229,234