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Preparing a Trial Balance (P4-1)Starbucks Corporation purchases and roasts high-quality wh...

Preparing a Trial Balance (P4-1)

Starbucks Corporation purchases and roasts high-quality whole bean coffees and sells them along with fresh-brewed coffees. Italian-style espresso beverages, a variety of pastries and confections, coffee-related accessories and equipment, and a line of premium teas. In addition to sales through its company-operated retail stores, Starbucks also sells coffee and tea products through other channels of distribution. The following is a simplified list of accounts and amounts reported in recent financial statements. The accounts have normal debit or credit balances, and the dollars are rounded to the nearest million. Assume that the year ended on September 30, 2012.

Accounts Payable

$ 325

Inventories

$ 693

Accounts Receivable

330

Long-Term Investments

374

Accrued Liabilities

1,152

Long-Term Liabilities

992

Accumulated Depreciation

2,761

Net Revenues

10,497

Cash

270

Other Current Assets

234

Contributed Capital

40

Other Long-Lived Assets

594

Cost of Sales

4,645

Other Operating Expenses

330

Depreciation Expense

549

Prepaid Expenses

169

General and Administrative

 

Property, Plant, and Equipment

5,717

Expense

723

Retained Earnings

9

Income Tax Expense

144

Short-Term Bank Debt

713

Interest Expense

53

Short-Term Investments

43

Interest Income

9

Store Operating Expenses

3.745

Required:

1. Prepare an adjusted trial balance at September 30. 2012.

2. How did you determine the amount for retained earnings?

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