Target Case (Static) LO24, LO28 Target Corporation prepares its financial statements according to U S GAAP Targets financial statements and disclosure notes for the year ended February 3, 2018, are available here This material also is available under the Investor Relations link at the companys website (www target com) Required 1 Refer to Targets balance sheet for the years ended February 3, 2018, and January 28, 2017 Based on the amounts reported for accumulated depreciation, and assuming no depreciable assets were sold during the year, prepare an adjusting entry to record Targets depreciation for the year 2 Refer to Targets statement of cash flows for the year ended February 3, 2018 Assuming your answer to requirement 1 includes all depreciation expense recognized during the year, how much amortization expense was recognized during the year 3 Note 13 provides information on Targets current assets Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018 How much cash did Target pay for insurance coverage during the year Prepare the adjusting entry Target would make to record all insurance expense for the year What would be the effect on the income statement and balance sheet if Target didnt record an adjusting entry for prepaid expenses Complete this question by entering your answers in the tabs below Req 1 Req 2 Req 3A Req 3B Req 3C Refer to Targets balance sheet for the years ended February 3, 2018, and January 28, 2017 Based on the amounts reported for accumulated depreciation, and assuming no depreciable assets were sold during the year, prepare an adjusting entry to record Targets depreciation for the year (If no entry is required for a transaction event, select No journal entry required in the first account field Enter your answers in millions, not in dollars (i e , 10,000,000 should be entered as 10) ) Show less Journal entry worksheet Record the adjusting entry for depreciation for the year Note Enter debits before credits Note 13 provides information on Targets current assets Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018 How much cash did Target pay for insurance coverage during the year (Enter your answers in millions, not in dollars (i e , 10,000,000 should be entered as 10) )Refer to Targets statement of cash flows for the year ended February 3, 2018 Assuming your answer to requirement 1 includes all depreciation expense recognized during the year, how much amortization expense was recognized during the year Amortization expense million Show less Cash paid for insurance coverage million Note 13 provides information on Targets current assets Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018 What would be the effect on the income statement and balance sheet if Target didnt record an adjusting entry for prepaid expenses Show less Failure to record an adjusting entry for prepaid expenses would cause expenses to be and thus net income to be It would also cause the Balance Sheet, Assets and Shareholders' Equity to be Note 13 provides information on Targets current assets Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018 Prepare the adjusting entry Target would make to record all insurance expense for the year (If no entry is required for a transaction event, select No journal entry required in the first account field ) Show less Journal entry worksheet Record the adjusting entry for expired insurance coverage and reduce the unexpired coverage to $181 Note Enter debits before credits Transaction General Journal Debit Credit 1

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Target Case (Static) LO24, LO28 Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended

Target Case (Static) LO24, LO28

Target Corporation prepares its financial statements according to U.S. GAAP. Targets financial statements and disclosure notes for the year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the companys website (www.target.com). Required: 1. Refer to Targets balance sheet for the years ended February 3, 2018, and January 28, 2017. Based on the amounts reported for accumulated depreciation, and assuming no depreciable assets were sold during the year, prepare an adjusting entry to record Targets depreciation for the year. 2. Refer to Targets statement of cash flows for the year ended February 3, 2018. Assuming your answer to requirement 1 includes all depreciation expense recognized during the year, how much amortization expense was recognized during the year? 3. Note 13 provides information on Targets current assets. Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018. How much cash did Target pay for insurance coverage during the year? Prepare the adjusting entry Target would make to record all insurance expense for the year. What would be the effect on the income statement and balance sheet if Target didnt record an adjusting entry for prepaid expenses?

Complete this question by entering your answers in the tabs below.

Req 1
Req 2
Req 3A
Req 3B
Req 3C

Refer to Targets balance sheet for the years ended February 3, 2018, and January 28, 2017. Based on the amounts reported for accumulated depreciation, and assuming no depreciable assets were sold during the year, prepare an adjusting entry to record Targets depreciation for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in millions, not in dollars (i.e., 10,000,000 should be entered as 10).)

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Journal entry worksheet

Record the adjusting entry for depreciation for the year.

Note: Enter debits before credits.

Note 13 provides information on Targets current assets. Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018. How much cash did Target pay for insurance coverage during the year? (Enter your answers in millions, not in dollars (i.e., 10,000,000 should be entered as 10).)Refer to Targets statement of cash flows for the year ended February 3, 2018. Assuming your answer to requirement 1 includes all depreciation expense recognized during the year, how much amortization expense was recognized during the year?

Amortization expense

million

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Cash paid for insurance coverage

million

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Failure to record an adjusting entry for prepaid expenses would cause expenses to be
and thus net income to be		. It would also cause the Balance Sheet, Assets and Shareholders' Equity to be

Note 13 provides information on Targets current assets. Assume all prepaid expenses are for prepaid insurance and that insurance expense comprises $50 million of the $14,248 million of selling, general, and administrative expenses reported in the income statement for the year ended February 3, 2018. Prepare the adjusting entry Target would make to record all insurance expense for the year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field.)

Show less

Journal entry worksheet