Starbucks Corporation-like all other businesses-makes adjusting entries at year-end in order to measure assets, liabilities, revenues, and expenses properly. Examine Starbucks Corporation’s Balance Sheet and Income Statement. Visit http://www.pearsonhighered.com/Horngren to view a link to Star-bucks Corporation’s Fiscal 2013 Annual Report.
1. Which asset accounts might Starbucks record adjusting entries for?
2. Which liability accounts might Starbucks record adjusting entries for?
3. Review Note 1 (Property, Plant, and Equipment) in the Notes to Consolidated Financial Statements. How are property, plant, and equipment carried on the balance sheet? How is depreciation of these assets calculated? What is the range of useful lives used when depreciating these assets?