This problem develops skills in preparing adjusting journal entries. The balance sheet  of Starbucks for the year ended October 2, 2011, included the following information (all $ amounts in millions).

Suppose that during the year ended October 2, 2011, $207.5 million cash was disbursed and debited to Prepaid Expenses and $279.3 million of liabilities classified as Other Accrued Expenses were paid in cash.
1. Assume that the Prepaid Expenses account relates to outlays for miscellaneous operating expenses, for example, supplies, insurance, and short-term rentals. Prepare summary journal entries for (a) the disbursements, and (b) the expenses (for our purposes, debit Operating Expenses) for the year ended October 2, 2011. Post the entries to T-accounts.
2. Prepare summary journal entries for (a) the disbursements, and (b) the expenses related to the Other Accrued Expenses account for the year ended October 2, 2011. (For our purposes, debit Operating Expenses.) Post the entries to T-accounts.

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Prepaid expenses and other current assets Other accrued expenses October 2, 2011 $161.5 319.0 October 3, 2010 $156.5 262.8