The following accounts, in alphabetical order, were selected from recent financial statements of Krispy Kreme Doughnuts, Inc.

For each account, indicate whether the normal balance is a debit or a credit, and the financial statement-balance sheet or income statement-where the account should be presented.

Account Normal Balance Debit/Credit Balance Sheet or Income Statement

Accounts payable

Accounts receivable

Common stock

Depreciation expense

Interest expense

Interest income

Inventories

Prepaid expenses

Property and EquipmentRevenues

Question

Business

Devon

25 November, 11:33

The following accounts, in alphabetical order, were selected from recent financial statements of Krispy Kreme Doughnuts, Inc.

For each account, indicate whether the normal balance is a debit or a credit, and the financial statement-balance sheet or income statement-where the account should be presented.

Account Normal Balance Debit/Credit Balance Sheet or Income Statement

Accounts payable

Accounts receivable

Common stock

Depreciation expense

Interest expense

Interest income

Inventories

Prepaid expenses

Property and EquipmentRevenues

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Answers (1)

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Emerson Moody · Answer 1

The list is as follows:

Accounts payable - Credit - Balance Sheet

Accounts receivable - Debit - Balance sheet

Common stock - Credit - Balance Sheet

Depreciation expense - Debit - Income Statement

Interest expense - Debit - Income Statement

Interest income - Credit - Income Statement

Inventories - Debit - Balance sheet

Prepaid expenses - Debit - Balance sheet

Property and Equipment - Debit - Balance sheet

Revenues - Credit - Income Statement