Question

In: Accounting

1. One way of accessing financial information about a company is to look it up at...

1. One way of accessing financial information about a company is to look it up at the company's website. Access the most recent annual report of a company of your choice from the company's website and address the following points. a. Review the company's footnotes (notes accompanying the financial statements) to discover how it applies the revenue recognition principle and when it recognizes revenue. Report what you discover. b. Based on your observation of the financial statements, what amount should be credited to Income Summary to summarize its revenues earned? c. Based on your observation of the financial statements, what amount should be debited to Income Summary to summarize its expenses incurred? d. What is the balance of its Income Summary account before it's closed?

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Expert Solution

I HOPE ITS HELPFUL TO YOU IF YOU HAVE ANY DOUBTS PLS COMMENTS BELOW..I WILL BE THERE TO HELP YOU...ALL THE BEST...!!

AS FOR GIVEN DATA..

One way of accessing financial information about a company is to look it up at the company's website. Access the most recent annual report of a company of your choice from the company's website and address the following points.

EXPLANATION ::-

a. Review the company's footnotes (notes accompanying the financial statements) to discover how it applies the revenue recognition principle and when it recognizes revenue. Report what you discover.

SOL ::-

It is into online retail business and it is the one of the best companies in online marketplace.

Company is using GAAP. It says that new revenue recongnition principle has come so Amazon will recognize revenue based on time. Some revenues are recorded as gross sale but some are not. Amazon generally record net revenue.

b. Based on your observation of the financial statements, what amount should be credited to Income Summary to summarize its revenues earned?

SOL::-

Amazon's Net sales is $177866 Million for the year ended Dec.31, 2017 in which Net product sales is $118573 and Net service sales is $59293.

c. Based on your observation of the financial statements, what amount should be debited to Income Summary to summarize its expenses incurred?

SOL ::-

otal operating expenses for the year ended Dec.2017 is $61826000 and cost of sale is $11934000.

d. What is the balance of its Income Summary account before it's closed?

SOL::-

Net Income (Positive Balance) is $3033000 for the year ended dec.31

HOPE YOU UNDERSTAND...

PLS RATE THUMBS UP....ITS HELPS ME ALOT...

THANK YOU...!!

ekkarill92 answered 1 hour ago
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