Question

Required information [The following information applies to the questions displayed below.] Starbucks is a coffee company-a big coffee company. During a 10-year period, the number of Starbucks locations in China grew from 24 to over 1,000. The following is adapted from Starbucks's annual report for the year ended October 2, 2016, and dollars are reported in millions Accounts Payable Accounts Receivable Cash Common Stock Equipment Intangible Assets Inventory Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Retained Earnings Short-Term Investments $4,760 585 2,810 400 3,820 3,100 1,360 1,910 1,520 595 4,390 710 Assume that the following events occurred in the following quarter, which ended December 31, 2016. Dollars are in millions a. Paid $1,250 cash for additional intangible assets b. Issued additional shares of common stock for $10,500 in cash. c Purchased equipment, paid $4,500 in cash and signed additional long-term loans for $9,400 d Paid $850 cash for accounts payable owed at October 2. e. Conducted negotiations to purchase a coffee farm, which is expected to cost $8,400 4. Summarize the journal entry effects from part 3 using T-accounts. (Enter your answers in millions (i.e., 10,000,000 should be entered as 10).)

Answer 1

The answer has been presented in the supporting sheet. The transaction which were required to be posted in the t shape account has been posted and accounts has been closed as well. Special Note :the point of negotiations to purchase a coffee farm which is expected to cost $84000 has not yet occurred. It means no transaction has taken place so no treatment in accounts and ledgers. For complete solution refer the sheets