During 2004, Starbucks entered into the following transactions. 1. Purchased property, plant, and equipment for $386,176,000 cash. 2. Issued common stock to investors for $137,590,000 cash. 3. Purchased inventory of $77,662,000 on account.

Using the following tabular analysis, show the effect of each transaction on the accounting equation. Put explanations for changes to Stockholders’ Equity in the right-hand margin.

Use Illustration 3-2 (page 107) as a model.

Assets = Liabilities + Stockholders’ Equity Coen vinventori: Property, Plant, _ Accounts Common Retained

"YT and Equipment _— Payable Stock Earnings