Question

Review the Apple balance sheet in Appendix A. Identify three accounts on its balance sheet that carry debit balances and three accounts on its balance sheet that carry credit balances.

Short answer

The three accounts having debit and credit balances are as follow –

Debit Balance	Credit Balance
1. Inventories	1. Accounts payable
2. Property, plant, and equipment	2. Long-term debt
3. Goodwill	3. Commercial Paper

Step-by-step solution

Accounts with debit balances

In the balance sheet, generally, the assets have debit balances. In the balance sheet given in the appendix for Apple, it has $290,479 million of total assets in 2015.

The three accounts having debit balances on the balance sheet are –

a) Inventories

b) Property plant and equipment

c) Goodwill

Accounts with credit balances

In the balance sheet, the liabilities and equity have credit balances. In the balance sheet given in the appendix for Apple, it has $171,124 million of total liabilities and $119,355 million of the total shareholder’s equity in 2015.

The three accounts having debit balance in the balance sheet are –

a) Accounts payable

b) Long term debt

c) Commercial paper