The financial statements of Apple Inc. are presented in Appendix A. The complete annual report, including the notes to the financial statements, is available at the company's website. Apple's financial statements contain the following selected accounts, stated in millions of dollars. Accounts Payable Cash and Cash Equivalents
Accounts Receivable Research and Development Expense
Property, Plant, and Equipment Inventories
What is the increase and decrease side for each account?
Increase Side Decrease Side
Accounts Payable CreditDebit DebitCredit
Accounts Receivable CreditDebit DebitCredit
Property, Plant, and Equipment DebitCredit CreditDebit
Cash and Cash Equivalents CreditDebit DebitCredit
Research and Development Expense CreditDebit DebitCredit
Inventories DebitCredit DebitCredit
What is the normal balance for each account?
Normal Balance
Accounts Payable DebitCredit
Accounts Receivable CreditDebit
Property, Plant, and Equipment DebitCredit
Cash and Cash Equivalents CreditDebit
Research and Development Expense CreditDebit
Inventories CreditDebit
Identify the probable other account in the transaction and the effect on that account when:
1. Accounts Receivable Cash is decreasedCash is decreased or Accounts Payable
is decreased. is increasedCash is decreased or Accounts Receivable is
increasedCash is increased.
2. Accounts Payable Cash is decreased or Accounts Payable is increasedCash
is decreased. is decreased or Accounts Receivable is increasedCash is
increasedCash is decreased.
3. Inventories are Cash is increasedCash is decreased or Accounts
increased. Receivable is increasedCash is decreasedCash is
decreased or Accounts Payable is increased.