Question

Required information [The following information applies to the questions displayed below.] 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, 2016, and dollars are reported in millions. Accounts Payable Accounts Receivable $5,540 615 Cash 3,110 Common Stock 460 Equipment Intangible Assets Inventory Notes Payable (long-term) Notes Payable (short-term) Prepaid Rent Retained Earnings Short-Term Investments 4,540 3,400 1,660 2,210 1,820 625 4,690 770 Assume that the following events occurred in the following quarter, which ended December 31, 2016. Dollars are in millions. a. Paid $1,550 cash for additional intangible assets. b. Issued additional shares of common stock for $11,100 in cash. c. Purchased equipment; paid $3,000 in cash and signed additional long-term loans for $10,000. d. Paid $910 cash for accounts payable owed at October 2. e. Conducted negotiations to purchase a coffee farm, which is expected to cost $9,000. 2. Analyze transactions (a)-(e) to determine their effects on the accounting equation. (Enter any decreases to account balances with a minus sign. Enter your answers in millions (i.e., 10,000,000 should be entered as 10).) Liabilities Stockholders' Equity Assets a. Cash (1,250) Intangible Assets 1,250 b. Cash c. Cash Equipment d. Cash e.

Answer 1

	Assets		=	Liabilities		+	Stockholder's Equity
a.	Cash	(1,550)				+
	Intangible asset	1,550
b.	Cash	11,100					Common stock	11,100
c.	Equipment	13,000		Long term loan	10,000
	Cash	(3,000)
d.	Cash	(910)		Accounts payable	(910)
e.	No Entry

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