This is a case study about Amazon corporation that involves the payment of Notes Payable. It connects the financial accounting concepts of long-term liabilities and expenses with financial statements. It is clear, concise, and an effective way to connect the abstract concept of long-term liabilities to a real-world setting.
The questions ask about the financial accounting treatment of the bond redemption, including the amount of the cash payment, classification of the bonds as an asset or liability, impact on the balance sheet of the redemption, and how much interest expense Amazon should recognize. No solutions or examples are provided.