The financial statements of Tootsie Roll in Appendix A at the back of this book contain the

Question:

The financial statements of Tootsie Roll in Appendix A at the back of this book contain the following selected accounts, all in thousands of dollars.

Common Stock ....................$ 24,586

Accounts Payable .................. 11,572

Accounts Receivable ............... 32,371

Selling, Marketing, and Administrative Expenses .... 97,821

Prepaid Expenses .................. 6,551

Property, Plant, and Equipment ........... 201,401

Net Sales .................... 492,742

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) Prepaid Expenses is increased.

(1) Interest Expense is increased.

(2) Property, Plant, and Equipment is increased.

Financial Statements
Financial statements are the standardized formats to present the financial information related to a business or an organization for its users. Financial statements contain the historical information as well as current period’s financial... Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...