Focus on Financials | Amazon.com, Inc.
Learning Objectives :

Record transactions; compute net income

Refer to Amazon.com, Inc.'s financial statements in Appendix A at the end of the book. Assume that Amazon.com completed the following selected transactions during 2012.

a. Made company sales (revenue) of $61,093 million, all on account (debit Accounts Receivable, net and other).

b. Collected cash on accounts receivable $60,300 million.

c. Purchased inventories on account, $47,010 million (credit Accounts Payable).

d. Incurred cost of sales in the amount of $45,971 million. Debit the Cost of Sales (expense) account. Credit the Inventories account.

e. Paid accounts payable in cash, $44,837 million.

f. Paid operating expenses of $14,446 million in cash.

g. Paid non-operating expenses (net) in cash, $132 million.

h. Paid income taxes, $428 million in cash (debit Provision for Income Taxes).

i. Accounted for income from other investment activity net of taxes in the amount of $155 million. Credit Other Assets. Debit the account entitled Equity Method Investment Activity, net of tax.

j. Paid cash for Property and Equipment, $2,643 million; paid cash for Other Assets, $291 million.