The fi nancial statements of Tootsie Roll are presented in Appendix D. The companys complete annual report,

Question:

The fi nancial statements of Tootsie Roll are presented in Appendix D. The company’s complete annual report, including the notes to its fi nancial statements, is available at www.tootsie.com.

Instructions
(a) Tootsie Roll has the following selected accounts:

Accounts Payable Inventories
Accounts Receivable Rent Revenue
Buildings Rent Expense
(1) What is the increase and decrease side of each account?
(2) What is the normal balance for each account?
(b) Identify the probable other account in the transaction and the effect on that account when:
(1) Accounts Receivable is decreased.
(2) Accounts Payable is decreased.
(3) Inventories is increased.

Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive... Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...