Amazon.com, Inc.’s financial statements are presented in Appendix D. Financial statements for Wal-Mart Stores, Inc. are presented in Appendix E. Instructions for accessing and using the complete annual reports of Amazon and Wal-Mart, including the notes to the financial statements, are also provided in Appendices D and E, respectively.

Instructions

(a) Based on the information contained in the financial statements, determine the normal balance of the listed accounts for each company.

Amazon ………………….. Wal-Mart

1. Interest Expense ………………. 1. Net Sales Revenues

2. Cash and Cash Equivalents … 2. Inventories

3. Accounts Payable …………….. 3. Cost of Sales

(b) Identify the other account ordinarily involved when:

(1) Accounts Receivable is increased.

(2) Interest Expense is increased.

(3) Salaries and Wages Payable is decreased.

(4) Service Revenue is increased.

Answer rating: 100% (QA)

a Determination of the normal balance ... View the full answer