Inferring Transactions from Financial Statements (FSET) Amazon.com Inc. is one of the world's leading e-commerce companies, with over $386 billion in revenues for the fiscal
Inferring Transactions from Financial Statements (FSET)
Amazon.com Inc. is one of the world's leading e-commerce companies, with over $386 billion in revenues for the fiscal year ended December 31, 2020. For the year ended December 31, 2020, Amazon's cost of goods sold was $233,307 million. Assume that all purchases were made on account.
The following T-accounts reflect information contained in the company's 2020 and 2019 balance sheets (in millions).
| Inventories | |||
|---|---|---|---|
| 2019 Bal. | 20,497 | ||
| 2020 Bal. | 23,795 | ||
| Accounts Payable | |||
|---|---|---|---|
| 47,183 | 2019 Bal. | ||
| 72,539 | 2020 Bal. | ||
a. Prepare the entries to record Amazon.com Inc.'s purchases and cost of goods sold for the 2020 fiscal
year using the financial statement effects template.
| Balance Sheet | Income Statement | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | Noncash | Contributed | Earned | Net | |||||||||||||
| Transaction | Asset | + | Assets | = | Liabilities | + | Capital | + | Capital | Revenues | - | Expenses | = | Income | |||
| Record purchases | |||||||||||||||||
| Record cost of goods sold | |||||||||||||||||
b. What amount did Amazon pay in cash to its suppliers for the 2020 fiscal year?
Assume that Accounts Payable is affected only by transactions related to inventory.
$Answer
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Authors: Contemporary Accounting Issues
1st Edition
9780324107845
