1. Provide the fiscal year 2020 adjusting journal entry (both accounts and amounts) that Starbucks made to record depreciation on its Property and Equipment. Assume
1.Provide the fiscal year 2020 adjusting journal entry (both accounts and amounts) that Starbucks made to record depreciation on its Property and Equipment. Assume that Starbucks makes one adjusting journal entry for depreciation expense at the end of each fiscal year as part of its adjusting entries. (3 points)
Depreciation Expense
$72
Accumulated Depreciation
$72
2.Does Starbucks's Goodwill footnote suggest that the company acquired any other companies during fiscal year 2020?(Circle one) (1 point)
YESNO
3.Does Starbucks's Goodwill footnote suggest that the company acquired any other companies during fiscal year 2019?(Circle one) (1 point)
YESNO
4.Provide the fiscal year 2020 adjusting journal entry (both accounts and amounts) that Starbucks made to record amortization on its finite-lived Intangible Assets. Assume that Starbucks makes one adjusting journal entry for amortization expense at the end of each fiscal year as part of its adjusting entries. (3 points)
Font Paragraph Styles Notes to Consolidated Financial Statements (partial) Footnote 1. Summary of Significant Accounting Policies 1.1 Description of Business We purchase and roast high-quality coffees that we sell, along with handcrafted coffee and tea beverages and variety of fresh and prepared food items, through our company-operated stores. We also sell a variety of coffe foodservice. and tea products and license our trademarks through other channels such as licensed stores, grocery an 1.3 Fiscal Year Our fiscal year ends on the Sunday closest to September 30. Fiscal year 2020 ended on September 27, 2020 fiscal year 2019 ended on September 29, 2019, and fiscal year 2018 ended on September 30, 2018. 1.12 Property, Plant, and Equipment Property, plant and equipment are cared at cost less accumulated depreciation Cost includes all direct costs necessary to acquire and prepare assets for use, including internal labor and overhead in some cases, Depreciation is computed using the straight-line method over estimated useful lives of the assets, generally ranging from 2 to 15 years for equipment and 30 to 40 years for buildings. Leasehold improvements are amortized over the shorter of their estimated useful lives or the related lease life, generally 10 years. Depreciation expense totaled $1,207.6 million and $1, 144.5 million in fiscal years 2020 and 2019, respectively. The following table summarizes property and equipment (in millions) As of 9/27/2020 9/20/2019 Land $ 46.0 5 46.8 Buildings 585.6 691 5 Leasehold improvements 8,262.6 7.948.6 Fixtures and equipment 4.882.6 5.228.1 Work in progress 377.3 358.5 Total property. plant and equipment 14 1553 14,273.5 Accumulated depreciation (7.913.9) (7.841 8) Property, plant and equipment, net $ 6.2414 5 6.BL7 1.14 Goodwill and Other Intangible Assets We evaluate goodwill for impairment annually during our third fiscal quarter, or more frequently if an event occurs of circumstances change. Other intangible assets include finite lived intangible assets, which manily consist of acquired and reacquired rights, trade secrets, licensing agreements, contract-based patents and copyrights. These assets are amortized over their estimated useful lives and are tested for impairment Indefinite-lived intangibles, which consist primarily of trade names and trademarks, are tested for impairment annually during the third fiscal quarter, or more frequently if an event occurs or circumstances change that would indicate that impairment may exist. The following reflects goodwill activity for fiscal years 2020 and 2019 (in millions); Goodwill balance as of September 30. 2018 $ 3.541.6 Divestitures (5.5) Other (45 3) Goodwill balance as of September 29, 2019 $ 3,490.8 Other 106 4 Goodwill balance as of September 27. 2020 $ 1.597.2 Amortization experise for finite-lived intangible assets was $223.7 million and $232.8 million in fiscal years 01 1263 wordsStarbucks Corporation's Financial Statements (partial) COFFEE Consolidated Balance Sheets In millions of dollars As of As of ASSETS Sept. 27. 2020 Sept. 29, 2019 Cash and cash equivalents $4,350.90 $2,686.60 Short-term investments 281 2 70.5 Accounts receivable, net 883.4 879.2 Inventories 1.551 40 1.529.40 Prepaid expenses and other current assets 739.5 488.2 Total current assets $7.806.40 $5,653 90 Long-term investments 684.8 616.0 Property, plant, and equipment, net 6.2414 6.431.7 Other long-term assets 10.492.6 2.245.4 Goodwill 552.1 781.8 Other intangible assets 3,597.2 3.490.8 Total assets $29.374.5 $19.219.6 LIABILITIES AND STOCKHOLDER'S EQUITY Accounts payable $997.9 $1,189 7 Accrued liabilities 1.856.7 2.418.3 Unearned revemies 1.456.5 1,269 0 Current portion of long-term debt 2498.7 Other current liabilities 5370 1 291.7 Total current liabilities 7.346.8 6.168.7 Long-term debt 14.659.6 11,167.0 Other long-term liabilities 6,350.4 1,540.1 Total liabilities 28,356 8 18 875.8 Common stock 375.1 42.3 Retained earnings 615.6 301.5 Total stockholders' equity 990.7 343.8 Total liabilities and stockholders' equity $29,347.5 $19 219,6 2 of 1263 words Focus
