The Coca-Cola Company (NYSE: KO)—like all other businesses—makes adjusting entries at year-end in order to measure assets, liabilities, revenues, and expenses properly. Examine Coca-Cola Company’s balance sheet and income statement in its 2021 Annual Report. Visit http://www.pearsonhighered.com/Horngren to view a link to Coca-Cola Company’s annual report.

Requirements 

1. Which asset accounts might Coca-Cola Company record adjusting entries for?

2. Which liability accounts might Coca-Cola Company record adjusting entries for?

3. Review the note labeled Property, Plant, and Equipment in the Notes to Consolidated Financial Statements. How are property, plant, and equipment stated on the balance sheet? How is depreciation of these assets calculated? What is the range of useful lives used when depreciating these assets?