This problem helps you develop skill in recording transactions by using a company’s actual account titles. Refer to the Amazon.com financial statements in Appendix A. Assume that Amazon.com completed the following selected transactions during December 2007:

Requirement 

1. Journalize these transactions, using the following account titles taken from the Amazon.com financial statements: Cash, Equipment, Accounts payable, Note payable, Sales revenue, Administrative expense, and Interest expense. Explanations are not required.

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Dec 1 9 12 22 28 Earned sales revenue and collected cash, $60,000. Borrowed $200,000 by signing a note payable. Purchased equipment on account, $10,000. Paid half the account payable from December 12. Paid electricity bill for $3,000 (this is an administrative expense) 31 Paid $100,000 of the note payable, plus interest expense of $1,000.