yHormal accoun E3-17 statements of Krispy Kreme Doughnuts, Inc. The following ac

Question

yHormal accoun E3-17 statements of Krispy Kreme Doughnuts, Inc. The following accounts, in alphabetical order, were selected from recent financial e and corresponding ial statement. Accounts payable Accounts receivable Common stock Depreciation expense Interest expense Interest income Inventories Prepaid expenses Property and equipment Revenues Instructions For each account, indicate (a) whether the normal balance is a debit or a credit, and (b) the financial statement-balance sheet or income statement-where the account should be presented

Explanation / Answer

Answers

Assets and Expenses account have DEBIT BALANCES normally.

Owner’s Equity, Common Stock, Liabilities and Revenues have CREDIT BALANCES normally.

Questions

Normal Balance

Financial Statements

Accounts payable

Credit balance

Balance Sheet

under Current Liabilities

Accounts receivables

Debit balance

Balance Sheet

under Current Assets

Common Stock

Credit balance

Balance Sheet

under Stockholder's Equity

Depreciation expense

Debit balance

Income Statement

Expense

Interest expenses

Debit balance

Income Statement

Expense

Interest income

Credit balance

Income Statement

Revenues

Inventories

Debit balance

Balance Sheet

under Current Assets

Prepaid expenses

Debit balance

Balance Sheet

under Current Assets

Property & Equipment

Debit balance

Balance Sheet

under Plant Property and Equipment

Revenues

Credit balance

Income Statement

Revenues

Questions

Normal Balance

Financial Statements

Accounts payable

Credit balance

Balance Sheet

under Current Liabilities

Accounts receivables

Debit balance

Balance Sheet

under Current Assets

Common Stock

Credit balance

Balance Sheet

under Stockholder's Equity

Depreciation expense

Debit balance

Income Statement

Expense

Interest expenses

Debit balance

Income Statement

Expense

Interest income

Credit balance

Income Statement

Revenues

Inventories

Debit balance

Balance Sheet

under Current Assets

Prepaid expenses

Debit balance

Balance Sheet

under Current Assets

Property & Equipment

Debit balance

Balance Sheet

under Plant Property and Equipment

Revenues

Credit balance

Income Statement

Revenues

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