Starbucks Corporationlike all other businessesmakes adjusting en-tries at year- end in order to measure assets, liabilities, revenues,

Question:

Starbucks Corporation—like all other businesses—makes adjusting en-tries at year- end in order to measure assets, liabilities, revenues, and expenses properly. Examine Starbucks Corporation’s Balance Sheet and Income Statement. Visit www.pearsonhighered.com/Horngren to view a link to Starbucks Corporation’s Fiscal 2011 Annual Report.

Requirements

1. Which asset accounts might Starbucks record adjusting entries for?

2. Which liability accounts might Starbucks record adjusting entries for?

3. Review Note 1 (Property, Plant and Equipment) in the Notes to Consolidated Financial Statements. How are property, plant, and equipment carried on the balance sheet? How is depreciation of these assets calculated? What is the range of useful lives used when depreciating these assets?

Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...