Inferring Transactions from Financial Statements (FSET) Amazon.com Inc. is one of the world's leading e-commerce...
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Accounting
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
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Record cost of goods sold
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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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