The financial statements of Apple Inc. in Appendix A contain the following selected accounts, all in thousands of dollars. Common Stock $35,867
Accounts Payable 49,049
Accounts Receivable 17,874
Selling, General, and Administrative Expenses 15,261
Inventories 4,855
Net Property, Plant, and Equipment 33,783
Net Sales 229,234

Required:
a. What is the increase and decrease side for each account?
b. What is the normal balance for each account?

Apple Inc.

a. The increase and decrease side for each account

                                                                             ($'000) Increase  Decrease

                                                                                              Side          Side

Common Stock                                                 $35,867    Credit      Debit

Accounts Payable                                               49,049    Credit      Debit

Accounts Receivable                                           17,874     Debit       Credit

Selling, General, and Administrative Expenses 15,261     Debit       Credit

Inventories                                                            4,855     Debit       Credit

Net Property, Plant, and Equipment                  33,783     Debit       Credit

Net Sales                                                          229,234     Credit      Debit

b. The normal balance for each account

                                                                             ($'000) Normal Balance

Common Stock                                                 $35,867    Credit Balance

Accounts Payable                                               49,049    Credit Balance

Accounts Receivable                                           17,874     Debit Balance

Selling, General, and Administrative Expenses 15,261     Debit Balance

Inventories                                                            4,855     Debit Balance

Net Property, Plant, and Equipment                  33,783     Debit Balance

Net Sales                                                          229,234     Credit Balance

Explanation:

Selected Accounts from Appendix A of Apple' Financial Statements:

                                                                             ($'000)

Common Stock                                                 $35,867

Accounts Payable                                               49,049    

Accounts Receivable                                           17,874

Selling, General, and Administrative Expenses 15,261

Inventories                                                            4,855

Net Property, Plant, and Equipment                  33,783

Net Sales                                                          229,234

b) Assets and Expenses increase by debit entries to their accounts, and they decrease by credit entries.  They normally have debit balances.  On the other hand, Liabilities, Equity, Revenue, and Income normally have credit balances.  They increase by credit entries to their accounts and decrease by debit entries.

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