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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	Answer		Answer		Answer		Answer		Answer				Answer		Answer		Answer
Record cost of goods sold	Answer		Answer		Answer		Answer		Answer				Answer		Answer		Answer

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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