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Prepare journal entries to record the following for 2014: Depreciation expense Capital expenditures Disposal of property, plant, and equipment Repair and maintenance costs Impairments and
Prepare journal entries to record the following for 2014:
- Depreciation expense
- Capital expenditures
- Disposal of property, plant, and equipment
- Repair and maintenance costs
- Impairments and write-downs (Assume that impairments and write-downs reduce the property and equipment account, rather than increasing accumulated depreciation).
Estimate the amount of property and equipment that was acquired through non-cash transactions.
PS-38. Analyzing PPE Accounts and Recording PPE Transactions, Including Discontinued Consolidated Statements of Financial Position (Asset Section Only) Operations February 1. 2015 The 2014 and 2013 income statements and balance sheets (asset section only) for Target Asuits Corporation follow, along with its footnote describing Target's accounting for property and equip Canh and cash equivalents, including short-term inwatments of ment, Target's cash flow statement for fiscal 2014 reported capital expenditures of $1,786 million 54540 and 14...... man Hy .... . ... .. ..me. A TOO 8.278 and disposal proceeds for property and equipment of $95 million. No gain or loss was reported on Assets of disoundrued opaatoms Other current aunty .. property and equipment disposals. In addition, Target acquired property and equipment through Toul current assets non-cash acquisitions not reported on the statement of cash flows. (Note some numbers were Property and equipment Land ..... . . .per 195. added to make the disclosure complete.) Buildings and improvements Fixtures and equipment. 5191 Computer houdwing and softy Contruction in-prog Consolidated Statements of Operations Accumulated depreciation.. (s millions] 2014 2013 2012 Property and equipment, nat .. 28.412 Mancumend assets al daccetinued & 442 5.401 $72,618 $71.279 $71,960 HP Sales... ... . .. .... ... ... ..... Credit card revenues. . .. I. 1,3-41 Total assets....... ...... 341404 $44.583 Total revenues ... . . . . .. . ... 72.618 71.279 73,301 Cost of sales.. . .. 51.278 50,039 50.568 12. Properly and Equipment Selling, general and administrative expenses .. -. . .... 14,676 14,465 14,042 Property and equipment in deprecated using the atnight-line method over citineed victul lives or lame Credit card expenses. ... 467 terms il shorter. We amortize boughold improvements purchin chined a for the beginning of the hital home team over the shorter of the super' worked Wives or a tyre that indudes the original bono tom, plus any moran Depreciation and amortization. .. 2.124 1,996 2,044 that are reasonably assured of the date the leasehold improvements are acquired Depreciation experus for Gain on receivables transaction.... (161) 2014 2013 and 2012 was $2348 million. $1975 million and $2827 million respectively For hoome tax par Earnings from continuing operations before interest Fatimated Useful Lives Life (in years) expense and income taxes .. . ... ... - . . . . ....... 4,535 5,170 5740 Net interest expense .. . . . . ... 882 1,049 6-84 Buildings and improvements...... .. ........ 5-30 Fixtures and coup ment ........ . . . ....m.. 2-15 Earnings from continuing operations before Computer hardware and software. income taxes ... ... ... ." 3653 4.121 5.056 Provision for income taxes. . . . 1,204 1,427 1,741 Long lived assets are reviewed for impairment when events or changes in circumstances, such as a decision Net earnings from continuing operations . ... to relocate or cken a store or make significant software changes, indicate that the asset's carrying value . . . . . 2.449 2 694 3,315 Discontinued operations, net of Ik.... ... .. (4,085) (723) (316 may not be recoverable. For paset groups classified as held for sale, the carrying value is compared to the fair value less cost to sell We estimate fair value by obtaining market appraisals, valuations from third party Net (loss]/earnings... $ [1636) $ 1,971 $ 2,989 brokers or other valuation techniques. Impairments ($ millions) 2014 2013 2012 Impairments included in segment SGAM .... . . .. . .. . . .. .... . ... . $37 Unallocated impairments. 15 19 Total impairments. ... ... . . . . . . . . . . . $124 $77 537 REQUIRED a. Prepare journal entries to record the following for 2014: i. Depreciation expense it. Capital expenditures ifi. Disposal of property, plant. and equipment iv. Repair and maintenance costs v. Impairments and write-downs (Assume that impairments and write-downs reduce the property and equipment account, rather than increasing accumulated depreciation.) b. Estimate the amount of property and equipment that was acquired through non-cash transactionsStep by Step Solution
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