Starbucks is a coffee company—a big coffee company. During a 10-year period, the

Question

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, 2019, and dollars are reported in millions.

Assume that the following events occurred in the following quarter, which ended December 31, 2019. Dollars are in millions.

a. Paid $1,000 cash for additional intangible assets.

b. Issued additional shares of common stock for $10,000 in cash.

c. Purchased equipment; paid $4,000 in cash and signed additional long-term loans for $9,500.

d. Paid $800 cash for accounts payable owed at October 2.

e. Conducted negotiations to purchase a coffee farm, which is expected to cost $8,400.

Formulate a general ledger and balance sheet. What is the current ratio for Starbucks at October 2, 2019, prior to the transactions listed above? What would it be after the transactions in (a)-(e)?

Accounts Payable 4,150 Accounts Receivable 770 Cash 2,130 Common Stock 630 Equipment 4,530 Intangible Assets 5,040 Inventory 1,380 Notes Payable (long-term) 3,200 Notes Payable (short-term) 400 Prepaid Rent 350 Retained Earnings 5,950 Short-Term Investments 130

Explanation / Answer

A) Here taken data from big coffie company

Time Period-T

The given data releated to the annual report of the year

Intangible A/C Dr

To Cash A/C

1000

Cash A/C Dr

To Common Stock A/C

10000

Equipment

To Cash A/C

To Long Tearm Loans A/C

4000

9500

Paybules A/C

To Cash A/C

800

Intangible Assets A/C

Common Stock A/C

Equipment A/C

Payables A/C

Long tearm loans A/C

Cash A/C

Inforamtion Debit(Dr) Credit(Cr)

Intangible A/C Dr

To Cash A/C

1000

1000

Cash A/C Dr

To Common Stock A/C

10000

10000

Equipment

To Cash A/C

To Long Tearm Loans A/C

13500

4000

9500

Paybules A/C

To Cash A/C

800

800

Total..... 25300 25300

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