Recording Transactions in a Journal and T-Accounts
Not what you're looking for?
Required:
1. Prepare journal entries to record transactions a-e.
2. Create T-accounts for each of the accounts on the balance sheet and enter the balances at the end of September as beginning balances for the October 1-December 31 quarter.
3. Enter the effects of the transactions in T-accounts (including referencing) and determine the December 31 balances.
4. Explain your response to event e.
5. Prepare a classified balance sheet at December 31.
6. As of December 31, has the financing for the investment in assets made by Starbucks primarily come from liabilities or stockholders' equity?
Purchase this Solution
Solution Summary
The solution explains how to journalize the transactions, post to T-accounts and prepare a balance sheet.
Solution Preview
Please see the attached file.
Starbucks is a coffee company?a big coffee company. During a 10-year period, the number of
Starbucks locations grew from 165 to over 5,800 stores?an average increase of 43 percent every
year. The following is adapted from a recent Starbucks annual report. Starbucks' year-end is
September 30 and dollars are reported in thousands.
Cash $ 174,500 Accounts payable $462,600
Accounts receivable 97,500 Short-term bank loans 74,900
Inventories 263,200 Long-term debt 5,100
Other current assets 312,100 Other long-term liabilities 23,500
Property, plant, and equipment 1,265,800 Contributed capital 930,300
Other long-term assets 179,500 Retained earnings 796,200
Assume that the following events occurred in the following quarter, which ended December 31:
a. Paid $10,400 cash for additional other long-term assets.
b. Issued additional shares of stock for $5,300 in cash.
c. Purchased property, plant, and equipment; paid $11,800 in cash and signed additional longterm
loans for $8,900.
d. Sold, at cost, other long-term assets for $3,000 cash.
e. Conducted negotiations to purchase a coffee farm, which is ...
Purchase this Solution
Free BrainMass Quizzes
Motivation
This tests some key elements of major motivation theories.
Basics of corporate finance
These questions will test you on your knowledge of finance.
MS Word 2010-Tricky Features
These questions are based on features of the previous word versions that were easy to figure out, but now seem more hidden to me.
Basic Social Media Concepts
The quiz will test your knowledge on basic social media concepts.
Understanding the Accounting Equation
These 10 questions help a new student of accounting to understand the basic premise of accounting and how it is applied to the business world.