The financial statements of Hershey Foods appear in Appendix B, following the financial statements for Tootsie Roll in Appendix A.

Instructions

(a) Based on the information contained in these financial statements, determine the normal balance for:

(b) Identify the other account ordinarily involved when:
(1) Accounts Receivable is increased.
(2) Notes Payable is decreased.
(3) Machinery is increased.
(4) Interest Income isincreased.

Transcribed Image Text:

Tootsie Roll Industries Hershey Foods (1) Accounts Receivable (2) Property, Plant, and Equipment (3) Accounts Payable (4) Retained Earnings (5) Net Sales (1) Inventories (2) Provision for Income Taxes (3) Accrued Liabilities (4) Common Stock (5) Interest Expense cried l.sbslities