2. You are given a list of accounts and amount of Starbucks Co. in the table below: Accounts Payable $61.250 Accounts Receivable $70.500 Building $50,000 Capital Stock $50,000 Cash $64,000 Equipment $30,000 Insurance Expense $5.000 Land $125,000 Notes Payable $175.000 Sales Revenue $25.000 Salaries Expense $20.000 Questions: A. Prepare a balance sheet for the Starbucks Co. for the fiscal year ending on December 31, 2019. B. In order to complete your balance sheet, you need to calculate the amount for retained earnings 1. A newly founded business performed in their first days of operations, the six transactions that you can find below. The business was founded on the 20th of July, by a young entrepreneur, Mr Grey, who wanted to provide typing, copying, and printing services to the university students in his home city: a) 20/07/2019: In exchange for his investment of $200,000 cash, the business issued to Mr Grey 1,000 shares of capital stock. b) 21/07/2019: Purchased a small building and land for $450,000, paying $165,000 cash and signing a note payable for the balance. The building $210,000 and the land was considered to be worth $240,000. c) 22/07/2019: Purchased office equipment for $30,000 from Office Furniture Co. Paid $17,000 cash and agreed to pay the balance within 60 days. d) 26/7/2019: Purchased from Auto Ltd. a motorcycle on credit for $3,400 to be used for making deliveries to customers. Mr Grey agreed to make payment to Auto Ltd. within 10 days. e) 27/7/2019 Signed a note payable due in six months, for borrowing $30,000 from a bank. f) 30/7/2019: Paid in full the account payable to Auto Ltd. Questions: A. Record the above transaction to the Journal. B. Post the recording to the T accounts, using the following Account Titles: Cash - Office Equipment - Notes Payable - Land - Delivery Vehicles - Accounts Payable - Buildings - Capital Stock C. Prepare a trial balance at July 31 by using the form provided to you in the theory's example (create the heading and the columns accordingly). 3. A recent Financial Statement of Dell Computer, Inc. had the following data given to you by your supervisor: Assets (01/01/2018) $116.4 billion Assets (31/12/2018) $176.0 billion Liabilities (31/12/2018) $57.9 billion Owners' Equity (01/01/2018) $76.6 billion Your supervisor cannot find the financial statement that he got the numbers from and asks you to find it for him. Questions: A. What financial statement are you going to search for? B. What is the amount of total liabilities of Dell Computer at the beginning of the year? C. What is the amount of total owners' equity reported for Dell Computer at the end of the year? D. If Dell Computer's retained earnings was $62.8 billion at the beginning of the year and $101.3 billion at the end of the year, can you determine the net income for the year, if a $2.5 billion dividend was declared during the year? 4. The following Trial Balance of Euroconsultants S.A. is given to you. You know that the company adjusts its books each month and closes its books at the end of the year. The trial balance at January 31, 2019, before adjustments is as follows: Credit Debe $19.645 27,000 27 7.500 64.500 Cash Accounts Receivable Supplies Prepaid Advertising Equipment Acced Depreciation Equipment Unnamed Conning Yes Income Tages Payable Capital Stock Rated Earnings Conntag Fees und Slunes sense Utilities apete Rent pense 122.500 17.550 15.140 1000 20850 72570 21,200 LOSO Your manager gives you the following information related to the month-end adjustments: a) Consulting fees received in advance, according to signed contracts, and were earned in January were equal to a total of $13,500. b) The company paid in advance for 5 months' advertising, on the 1" of November 2018, (remaining prepaid advertisement amount before adjustments covers 3 remaining months) c) On the 314 of January 2019, supplies on hand (remaining supplies) amount to $2,250 a) The useful life of the company's equipment was originally estimated to be 4 years. e) The corporation is subject to income taxes of 25% of taxable income. (Assume taxable income is the same as "income before taxes and use the 25% rate to estimate the taxes that the company will have to pay) Questions: A. What is the balance in the Unearned Consulting Fees account on the 31" of January after the proper adjusting entry is made? B. What are the amounts of the Advertising Expense and the Supplies Expense accounts to be reported in the January Income Statement? C. After the proper adjusting entry is recorded, what is the Book Value of the equipment on the 31" of January? D. Present the Income Statement and compute the amount of Net Income or loss to be shown in the January Income Statement. Wishing you success PC