Question: Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars
Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions):
- Issued stock for $623 cash (example).
- Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.
- Paid $5,000 in principal and $300 in interest expense on long-term debt.
- Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account.
- Incurred $25,249 in shipping expenses, all on credit.
- Paid $118,241 cash on accounts owed to suppliers.
- Incurred $10,069 in marketing expenses; paid cash.
- Collected $38,200 in cash from customers paying on their Amazon credit card account.
- Borrowed $16,231 in cash as long-term debt.
- Used inventory costing $111,934 when sold to customers.
- Paid $830 in income tax recorded as an expense in the prior year.
Answer is not complete. Income Statement Transaction Assets Balance Sheet Stockholders' Liabilities Equity 623 Revenues Expenses Net Income a b (1,427) 623 6,320 (4,893) (5,300) 123,949 53,917 300 x (300) 177,866 d 177,866 e (25,249) 25,249 25,249 118,241 f (10,069) OD 9 h (118,241) (10,069) 38,200 (38,200) 16,231 (111,934) (830) i 16,231 (111,934) i k (830)
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