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

Question:

Starbucks is a coffee company-a big coffee company. During a 10-year period, the number of Starbucks locations grew from 165 to over 8,800 stores in 50 countries. The following is adapted from Starbucks's annual report for the year ended September 30, 2010, and dollars are reported in thousands.
Cash.............................. $ 1,164,000........... Accounts Payable............ $ 282,600
Accounts Receivable............... 302,700.... Short-term Bank Loans............ 1,496,500
Inventories........................... 543,300............. Long-term Debt.............. 549,400
Other Current Assets............... 746,400. Other Noncurrent Liabilities............ 375,100
Property, Plant, and Equipment. 2,416,500............ Contributed Capital........... 211,100
Other Noncurrent Assets......... 1,213,000.............. Retained Earnings........ 3,471,200
Assume that the following events occurred in the following quarter, which ended December 31, 2010. Dollars are in thousands.
a. Paid $10,000 cash for additional other long-term assets.
b. Issued additional shares of stock for $5,100 in cash.
c. Purchased property, plant, and equipment; paid $11,200 in cash and signed additional long term loans for $9,500.
d. Sold, at cost, other long-term assets for $6,000 cash.
e. Conducted negotiations to purchase a coffee farm, which is expected to cost $8,400.
Required:
1. Analyze transactions (a)-(e) to determine their effects on the accounting equation. Use the format shown in the demonstration case on page 68.
2. Record the transaction effects determined in requirement 1 using journal entries.
3. Summarize the journal entry effects from requirement 2 using T-accounts. Use the
September 2010 ending balances (reported above) as the beginning balances for the October-December 2010 quarter.
4. Explain your response to event (e).
5. Prepare a classified at December 31, 2010.
6. As of December 31, 2010, has the financing for the investment in assets made by Starbucks primarily come from liabilities or stockholders' equity?
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...