The financial statements of Hilton are presented in the Appendix. The statements contain the following selected accounts, stated in millions of dollars, for 2001.. LO5 Accounts Payable $ 533 Income Taxes Payable $ 4 Accounts Receivable 291 Interest Expense 385 Property, Plant, and Equipment 3,911 Inventory 148 Instructions

(a) Answer the following questions:
(1) What is the increase and decrease side for each account?
(2) 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) Inventory 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.

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