Amazon Inc :

• Starting Balances:
  • Cash: $20,000
  • Accounts Receivable: $15,000
  • Inventory: $30,000
  • Equipment: $50,000 (Accumulated Depreciation: $10,000)
  • Accounts Payable: $18,000
  • Capital: $87,000
• Transactions for February 2023:
  • Purchased additional inventory for $25,000 on account.
  • Paid $5,000 towards accounts payable.
  • Sold inventory for $40,000 (cost of goods sold: $25,000).
  • Collected $12,000 from accounts receivable.
  • Paid $8,000 in operating expenses.
  • Recognized depreciation expense of $1,000.

Requirements:

1. Prepare journal entries for the above transactions.
2. Post the entries to the general ledger.
3. Prepare an adjusted trial balance.
4. Create an income statement and a balance sheet for Amazon Inc. as of February 28, 2023.