The financial statements of Eastern Platinum Limited (Eastplats) are presented in Appendix A at the end of this book. They contain the following selected accounts:

Trade and other receivables......................Accounts payable and accrued liabilities

Inventories...................................................Production costs

Short-term investments.............................Interest income

Property, plant and equipment.................Depletion and depreciation

Instructions

(a) What is the increase and decrease side for each account? What is the normal balance for each account?

(b) Identify the probable other account(s) in each transaction listed below and the effect on that (those) other account(s) when:

1. Trade and other receivables are decreased.

2. Inventories are increased.

3. Property, plant and equipment are increased.

4. Accounts payable are decreased.

5. Production costs are increased.

6. General and administrative expense is increased.

7. Interest income is increased.

8. Short-term investments are increased.