Chapter 3, Question 3 Solution - Amazon.com Inc headquartered in Seattle WA started its electronic commerce business in 1995 and expanded rapidly The

Chapter 3, Question 3 Solution - Amazon.com Inc...

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Amazon.com, Inc., headquartered in Seattle, WA, started its electronic commerce business in 1995 and expanded rapidly. The following transactions occurred during a recent year (dollars in millions): a. Issued stock for $6 cash (example). b. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account. c. Paid $513 in principal and $91 in interest expense on long-term debt d. Earned $88,988 in sales revenue; collected $87,949 in cash with the customers owing the rest on account. e. Incurred $10,766 in shipping expenses, all on credit. f. Paid $28,241 cash on accounts owed to suppliers. g. Incurred $4,332 in marketing expenses; paid cash. h. Collected $620 in cash from customers paying on account. i. Borrowed $6,359 in cash as long-term debt. j. Used inventory costing $62,752 when sold to customers. k. Paid $177 in income tax recorded as an expense in the prior year.
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