Target Corporation-like all other businesses-makes adjusting entries prior to year end in order to measure assets, liabilities, revenues, and expenses properly. Examine Target's balance sheet, and pay particular attention to Other Current Assets (which includes Prepaid Expenses) and Accrued Liabilities (which includes Salary Payable and Interest Payable). 1. Open T-accounts for Other Current Assets (Prepaid Expenses). Accrued Liabilities, and Accumulated Depreciation. Insert Target's balances (in millions) at January 30, 1999. (Example: Other Current Assets (Prepaid Expenses). $619) 2. Journalize the following transactions for the current year, ended January 29, 2000. Key entries by letter. Explanations are not required. Cash transactions (amounts in millions):

a. Paid prepaid expenses. $2,113.

b. Paid the January 30, 1999, accrued liabilities. Adjustments at January 29, 2000 (amounts in millions):

c. Prepaid expenses expired. $2.104. (Debit Administrative Expense)

d. Accrued liabilities. $1,520. (Debit Selling Expense.)

e. Depreciation expense. $157. 3. Post to the Other Current Assets (Prepaid Expenses) account the Accrued Liabilities account and the Accumulated Depreciation account. Then these accounts should agree with the corresponding amounts reported in the January 29, 2000, balance sheet. Check to make sure they do agree with Target's actual balances.