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

Deja Gibbs

24 May, 18:34

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

+2

Answers (1)

Know the Answer?

Mathias Sullivan · 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