Reference no: EM131138649
PepsiCo's financial statements are presented in Appendix A. Financial statements of The Coca-Cola Company are presented in Appendix B.
Instructions
(a) Based on the information contained in the financial statements, determine the normal balance of the listed accounts for each company.
Pepsi Coca-Cola
1. Inventory 1. Accounts Receivable
2. Property, Plant, and Equipment 2. Cash and Cash Equivalents
3. Accounts Payable 3. Cost of Goods Sold
4. Interest Expense 4. Sales (revenue)
(b) Identify the other account ordinarily involved when:
(1) Accounts Receivable is increased.
(2) Wages Payable is decreased.
(3) Property, Plant, and Equipment is increased.
(4) Interest Expense is increased.
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