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 $ 4,240 565 2,610 360 3,340 2,900 1.160 1, 710 1,320 575 4,190 670 Assume that the following events occurred in the following quarter, which ended December 31, 2016. Dollars are in millions a. Paid $1,050 cash for additional intangible assets. b. Issued additional shares of common stock for $10,100 in cash. c. Purchased equipment; paid $4,100 in cash and signed additional long-term loans for $9,000. d. Paid $810 cash for accounts payable owed at October 2. e. Conducted negotiations to purchase a coffee farm, which is expected to cost $8.000. 4. Summarize the journal entry effects from part 3 using T-accounts. (Enter your answers in millions (i.e., 10,000,000 should be

Answer 1

Ans
	Cash				Account receivable
Beg Bal	2610			Beg Bal	565
intangible assets		1050
Common Stock	10100
Equipments		4100
Account payable		810		End Bal		565
End Bal		6750
Total	12710	12710		Total	565	565
	Inventory				Short Term Investment
Beg Bal	1160			Beg Bal	670
End Bal		1160		End Bal		670
Total	1160	1160		Total	670	670
	Prepaid rent				Equipments
Beg Bal	575			Beg Bal	3340
				Cash	4100
End Bal		575		Note Payable long term	9000
Total	575	575		End Bal		16440
				Total	16440	16440
	Intangible Assests				Account Payable
Beg Bal	2900			Beg Bal		4240
Cash	1050			Cash	810
End Bal		3950
				End Bal	3430
Total	3950	3950		Total	4240	4240
	Notes Payable (Short Term)				Notes Payable (Long Term)
Beg Bal		1320		Beg Bal		1710
				Equipments		9000
End Bal	1320
				End Bal	10710
Total	1320	1320
				Total	10710	10710
	Retained Earning				Common Stock
Beg Bal		4190		Beg Bal		360
				Cash		10100
End Bal	4190			End Bal	10460
Total	4190	4190		Total	10460	10460

point no E will not have any effect as the negotiation is going on and the transaction has not materialized.