Question

Starbucks is a coffee company—a big coffee company. During a 10-year period, the number of Starbucks locations in China grew from 24 to over 1,000. The following is adapted from Starbucks’s annual report for the year ended October 2, 2019, and dollars are reported 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 following quarter, which ended December 31, 2019. Dollars are in millions.

a. Paid $1,000 cash for additional intangible assets.

b. Issued additional shares of common stock for $10,000 in cash.

c. Purchased equipment; paid $4,000 in cash and signed additional 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 is expected to cost $8,400.

Formulate a general ledger and balance sheet. What is the current ratio for Starbucks at October 2, 2019, prior to the transactions listed above? What would it be after the transactions in (a)-(e)?

Answer 1

A) Here taken data from big coffie company

Time Period-T

The given data releated to the annual report of the year

Inforamtion	Debit(Dr)	Credit(Cr)
Intangible A/C Dr To Cash A/C	1000	1000
Cash A/C Dr To Common Stock A/C	10000	10000
Equipment To Cash A/C To Long Tearm Loans A/C	13500	4000 9500
Paybules A/C To Cash A/C	800	800
Total.....	25300	25300

Intangible Assets A/C

Inforamtion	Amount	Inforamtion	Amount
To Balancve B/D	5040	By Balanace C/d	6040
To Cash	1000
Total	6040	Total	6040

Common Stock A/C

Information	Amount	Information	Amount
To Balance C/d	10630	By Balance b/d	630
		By cash A/C	10000
Total	10630	Total	10630

Equipment A/C

Inforamtion	Amount	Inforamtion	Amount
To Balance b/d	4530	By Balance c/d	18030
To Cash A/C	4000
To Long term(Pay biles)	9500
Total	18030	Total	18030

Payables A/C

Inforamtion	Amount	Information	Amount
To Cash A/C	800	By Balance b/d	4150
To Blance b/d	3350
Total	4150	Total	4150

Long tearm loans A/C

Inforamtion	Amount	IInformation	Amount
To Blanace C/d	9500	By Equipment	9500
Total	9500	Total	9500

Cash A/C

Information	Amount	Information	Amount
To Balance b/d	2130	By intangible Asset A/C	1000
To Common Stock A/C	10000	By Equipment	4000
		By Payable	800
		by Balance	6330
Total	12130	Total	12130