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):

1. Issued stock for $623 cash (example).
2. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.
3. Paid $5,000 in principal and $300 in interest expense on long-term debt.
4. Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account.
5. Incurred $25,249 in shipping expenses, all on credit.
6. Paid $118,241 cash on accounts owed to suppliers.
7. Incurred $10,069 in marketing expenses; paid cash.
8. Collected $38,200 in cash from customers paying on their Amazon credit card account.
9. Borrowed $16,231 in cash as long-term debt.
10. Used inventory costing $111,934 when sold to customers.
11. Paid $830 in income tax recorded as an expense in the prior year.

Required:

For each of the transactions, complete the tabulation, indicating the effect (positive value for increase, negative value for decrease, and leave blank if no effect) of each transaction.

1. Issued stock for $623 cash

Assets increase by $623

Stockholders' equity increase by $623

2. Purchased equipment costing $6,320, paying $4,893 in cash and charging the rest on account.

Assets increase by $6,320 (equipment)

Assets decrease by $4,893 (cash)

So assets net increase by $1,427

Liabilities increase by $1,427 (the amount that was paid on account)

3. Paid $5,000 in principal and $300 in interest expense on long-term debt.

Liabilities decrease by $5,300

4. Earned $177,866 in sales revenue; collected $123,949 in cash with the customers owing the rest on their Amazon credit card account.

Revenue increases by $177,886.

Assets increase by $177,886

5. Incurred $25,249 in shipping expenses, all on credit.

Expenses increase by $25,249

Liabilities increase by $25,249

6. Paid $118,241 cash on accounts owed to suppliers.

Assets decrease by $118,241

Liabilities decrease by $118,241

7. Incurred $10,069 in marketing expenses; paid cash.

Expenses increase by $10,069

Assets decrease by $10,069

8. Collected $38,200 in cash from customers paying on their Amazon credit card account.

Assets increase by $38,200

9. Borrowed $16,231 in cash as long-term debt.

Assets increase by $16,231

Liabilities increase by $16,231

10. Used inventory costing $111,934 when sold to customers.

Assets decrease by $111,934

11. Paid $830 in income tax recorded as an expense in the prior year.

Liabilities decrease by $830

answer casual models;