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

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Starbucks is a coffee company—a big coffee company. During a10-year period, the number of Starbucks locations in China grewfrom 24 to over 1,000. The following is adapted from Starbucks’sannual report for the year ended October 2, 2019, and dollars arereported in millions.
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
Assume that the following events occurred in the followingquarter, which ended December 31, 2019. Dollars are inmillions.
a. Paid $1,000 cash for additional intangible assets.
b. Issued additional shares of common stock for $10,000 incash.
c. Purchased equipment; paid $4,000 in cash and signedadditional 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 isexpected to cost $8,400.
Formulate a general ledger and balance sheet. What is thecurrent ratio for Starbucks at October 2, 2019, prior to thetransactions listed above? What would it be after the transactionsin (a)-(e)?

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3.8 Ratings (727 Votes)

A Here taken data from big coffie company Time PeriodT The given data releated to the annual report of the year Inforamtion DebitDr CreditCr Intangible AC Dr To Cash AC 1000 1000 Cash AC Dr To Common Stock AC 10000 10000 Equipment To See Answer

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Starbucks is a coffee company—a big coffee company. During a10-year period, the number of Starbucks locations in China grewfrom 24 to over 1,000. The following is adapted from Starbucks’sannual report for the year ended October 2, 2019, and dollars arereported in millions.Accounts Payable4,150Accounts Receivable770Cash2,130Common Stock630Equipment4,530Intangible Assets5,040Inventory1,380Notes Payable (long-term)3,200Notes Payable (short-term)400Prepaid Rent350Retained Earnings5,950Short-Term Investments130Assume that the following events occurred in the followingquarter, which ended December 31, 2019. Dollars are inmillions.a. Paid $1,000 cash for additional intangible assets.b. Issued additional shares of common stock for $10,000 incash.c. Purchased equipment; paid $4,000 in cash and signedadditional 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 isexpected to cost $8,400.Formulate a general ledger and balance sheet. What is thecurrent ratio for Starbucks at October 2, 2019, prior to thetransactions listed above? What would it be after the transactionsin (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