BYP2-1 PepsiCo are presented in Appendix A

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Financial Reporting Problem: PepsiCo, Inc.
BYP2-1 The financial statements of PepsiCo are presented in Appendix A. The notes accompanying the statements contain the following selected accounts, stated in millions of dollars.

• Accounts Payable $1,799
• Income Taxes Payable $ 546
• Accounts Receivable 3,261
• Interest Expense 256
• Property, Plant, and Equipment 8,681
• Inventory 1,693

Instructions
(a) Answer the following questions.

• (1) What is the increase and decrease side for each account?
• (2) What is the normal balance for each account?

(b) Identify the probable other account in the transaction and the effect on that account when:

• (1) Accounts Receivable is decreased.
• (2) Accounts Payable is decreased.
• (3) Inventory is increased.

(c) Identify the other account(s) that ordinarily would be involved when:

• (1) Interest Expense is increased.
• (2) Property, Plant, and Equipment is increased.