Starbucks is a coffee company-a big coffee company. Duringa 10-year period, the number of Starbucks locations grew from 165to over 5,800 stores-an average increase of 43 percent everyyear. The following is adapted from a recent Starbucks annualreport. Starbucks' year-end is September 30 and dollars arereported in thousands.

Cash $ 174,500                                             Accounts payable $462,600

Accounts receivable 97,500                            Short-term bank loans 74,900

Inventories 263,200                                        Long-term debt 5,100

Other current assets 312,100                          Other long-term liabilities 23,500

Property, plant, and equipment 1,265,800        Contributed capital930,300

Other long-term assets 179,500                      Retained earnings 796,200

Assume that the following events occurred in the followingquarter, which ended December 31:

a. Paid $10,400 cash for additional other long-termassets.

b. Issued additional shares of stock for $5,300 incash.

c. Purchased property, plant, and equipment; paid$11,800 in cash and signed additional longterm loans for$8,900.

d. Sold, at cost, other long-term assets for $3,000cash.

e. Conducted negotiations to purchase a coffee farm,which is expected to cost $7,400.

Required:

1. Prepare journal entries to recordtransactions a-e.

2. Create T-accounts for each of the accountson the balance sheet and enter the balances at the end of Septemberas beginning balances for the October 1-December 31quarter.

3. Enter the effects of the transactions inT-accounts (including referencing) and determine the December 31balances.

4. Explain your response to evente.

5. Prepare a classified balance sheet atDecember 31.

6. As of December 31, has the financing for theinvestment in assets made by Starbucks primarily come fromliabilities or stockholders' equity?