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Assume that the following transactions took place at Amazon during fiscal 2021. Write down the journal entries for each of these transactions using the account
Assume that the following transactions took place at Amazon during fiscal 2021. Write down the journal entries for each of these transactions using the account names from Amazon's financial statements. Also, indicate on the chart on page 4 which of the following balance sheet and income statement categories are affected by the transactions: assets (A), liabilities (L), equity (E), and net income (NI). The numbers are in $1,000s. Ignore income taxes for example, if an item impacts sales, do not attempt to determine the effect of the item on income tax expense. Example: Received cash for interest income of $233. Solution: Dr. Cash (A) Cr. Interest income (NI, SE) Transactions and journal entries (all values are in $000's): 233 233 7) June 1: Recognized $13,759 that was received in advance from customers (see (6)) as revenue. 8) June 23: Recognized $208 of prepaid expenses as marketing expense in this period. 9) July 5: Jeff Bezos stepped down and Andy Jassy became the CEO of Amazon. 10) August 19: Paid $8,269 of accounts payable. 11) November 21: Accrued general and administrative expenses amounting to $5,142
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