Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for t year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the company's website (www.target.com). Required: 1. Refer to Target's 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 Target's depreciation for the year. 2. Refer to Target's statement of cash flows for the year ended February 3, 2018. Assuming your answer to requirement 1 includes al depreciation expense recognized during the year, how much amortization expense was recognized during the year? 3. Note 13 provides information on Target's current assets. Assume all prepaid expenses are for prepaid insurance and that insuranc 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 didn't record an adjusting entry for prepaid expenses? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3A Reg 3B Req 3C Note 13 provides information on Target's 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.) Show less Cash paid for insurance coverage million Req 1 Reg 2 Req Req 3B Req 3C Note 13 provides information on Target's 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 View transaction list 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 Record entry Clear entry View general journal Consolidated Statements of Financial Position February 3, January 28, (millions, except footnotes) 2018 2017 Assets Cash and cash equivalents $ 2,643 $ 2,512 Inventory 8,657 8,309 Other current assets 1,264 1,169 Total current assets 12,564 11,990 Property and equipment Land 6,095 6,106 Buildings and improvements 28,396 27,611 Fixtures and equipment 5,623 5,503 Computer hardware and software 2,645 2,651 Construction-in-progress 440 200 Accumulated depreciation (18,181) (17,413) Property and equipment, net 25,018 24,658 Other noncurrent assets 1,417 783 Total assets $ 38,999 $ 37,431 Liabilities and shareholders' investment Accounts payable $ 8,677 $ 7,252 Accrued and other current liabilities 4,254 3,737 Current portion of long-term debt and other borrowings 270 1,718 Total current liabilities 13,201 12,707 Long-term debt and other borrowings 11,317 11,031 Deferred income taxes 713 861 Other noncurrent liabilities 2,059 1,879 Total noncurrent liabilities 14,089 13,771 Shareholders' investment Common stock 45 46 Additional paid-in capital 5,858 5,661 Retained earnings 6,553 5,884 Accumulated other comprehensive loss (747) (638) Total shareholders' investment 11,709 10,953 Total liabilities and shareholders' investment $ 38,999 $ 37,431 Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 541,681,670 shares issued and outstanding at February 3, 2018;556,156,228 shares issued and outstanding at January 28, 2017 Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding at February 3, 2018 or January 28, 2017 See accompanying Notes to Consolidated Financial Statements. 13. Other Current Assets $ Other Current Assets (millions) Income tax and other receivables Vendor income receivable Prepaid expenses Other Total February 3, 2018 513 $ 416 181 154 1,264 $ January 28, 2017 364 385 207 213 1,169 $ Consolidated Statements of Operations (millions, except per share data) 2017 2016 2015 Sales $ 71,879 $ 69,495 $ 73,785 Cost of sales() 51,125 49,145 52,241 Gross margin 20,754 20,350 21,544 Selling, general and administrative expenses 14,248 13,356 14,665 Depreciation and amortization (exclusive of depreciation included in cost of sales) () 2,194 2,025 1,969 Gain on sale (620) Earnings from continuing operations before interest expense and income taxes 4,312 4,969 5,530 Net interest expense 666 1,004 607 Earnings from continuing operations before income taxes 3,646 3,965 4,923 Provision for income taxes 718 1,296 1,602 Net earnings from continuing operations 2,928 2,669 3,321 Discontinued operations, net of tax 6 68 42 Net earnings $ 2,934 $ 2,737 $ 3,363 Basic earnings per share Continuing operations $ 5.35 $ 4.62 $ 5.29 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.36 $ 4.74 $ 5.35 Diluted earnings per share Continuing operations 5.32 $ 4.58 $ 5.25 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.33 $ 4.70 $ 5.31 Weighted average common shares outstanding Basic 546.8 577.6 627.7 Dilutive effect of share-based awards 3.5 4.9 5.2 Diluted 550.3 582.5 632.9 Antidilutive shares 4.1 0.1 Dividends declared per share $ 2.46 $ 2.36 $ 2.20 Note: Per share amounts may not foot due to rounding. Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. See accompanying Notes to Consolidated Financial Statements. $ $ $ $ Target Corporation prepares its financial statements according to U.S. GAAP. Target's financial statements and disclosure notes for t year ended February 3, 2018, are available here. This material also is available under the Investor Relations link at the company's website (www.target.com). Required: 1. Refer to Target's 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 Target's depreciation for the year. 2. Refer to Target's statement of cash flows for the year ended February 3, 2018. Assuming your answer to requirement 1 includes al depreciation expense recognized during the year, how much amortization expense was recognized during the year? 3. Note 13 provides information on Target's current assets. Assume all prepaid expenses are for prepaid insurance and that insuranc 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 didn't record an adjusting entry for prepaid expenses? Complete this question by entering your answers in the tabs below. Req 1 Reg 2 Reg 3A Reg 3B Req 3C Note 13 provides information on Target's 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.) Show less Cash paid for insurance coverage million Req 1 Reg 2 Req Req 3B Req 3C Note 13 provides information on Target's 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 View transaction list 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 Record entry Clear entry View general journal Consolidated Statements of Financial Position February 3, January 28, (millions, except footnotes) 2018 2017 Assets Cash and cash equivalents $ 2,643 $ 2,512 Inventory 8,657 8,309 Other current assets 1,264 1,169 Total current assets 12,564 11,990 Property and equipment Land 6,095 6,106 Buildings and improvements 28,396 27,611 Fixtures and equipment 5,623 5,503 Computer hardware and software 2,645 2,651 Construction-in-progress 440 200 Accumulated depreciation (18,181) (17,413) Property and equipment, net 25,018 24,658 Other noncurrent assets 1,417 783 Total assets $ 38,999 $ 37,431 Liabilities and shareholders' investment Accounts payable $ 8,677 $ 7,252 Accrued and other current liabilities 4,254 3,737 Current portion of long-term debt and other borrowings 270 1,718 Total current liabilities 13,201 12,707 Long-term debt and other borrowings 11,317 11,031 Deferred income taxes 713 861 Other noncurrent liabilities 2,059 1,879 Total noncurrent liabilities 14,089 13,771 Shareholders' investment Common stock 45 46 Additional paid-in capital 5,858 5,661 Retained earnings 6,553 5,884 Accumulated other comprehensive loss (747) (638) Total shareholders' investment 11,709 10,953 Total liabilities and shareholders' investment $ 38,999 $ 37,431 Common Stock Authorized 6,000,000,000 shares, $0.0833 par value; 541,681,670 shares issued and outstanding at February 3, 2018;556,156,228 shares issued and outstanding at January 28, 2017 Preferred Stock Authorized 5,000,000 shares, $0.01 par value; no shares were issued or outstanding at February 3, 2018 or January 28, 2017 See accompanying Notes to Consolidated Financial Statements. 13. Other Current Assets $ Other Current Assets (millions) Income tax and other receivables Vendor income receivable Prepaid expenses Other Total February 3, 2018 513 $ 416 181 154 1,264 $ January 28, 2017 364 385 207 213 1,169 $ Consolidated Statements of Operations (millions, except per share data) 2017 2016 2015 Sales $ 71,879 $ 69,495 $ 73,785 Cost of sales() 51,125 49,145 52,241 Gross margin 20,754 20,350 21,544 Selling, general and administrative expenses 14,248 13,356 14,665 Depreciation and amortization (exclusive of depreciation included in cost of sales) () 2,194 2,025 1,969 Gain on sale (620) Earnings from continuing operations before interest expense and income taxes 4,312 4,969 5,530 Net interest expense 666 1,004 607 Earnings from continuing operations before income taxes 3,646 3,965 4,923 Provision for income taxes 718 1,296 1,602 Net earnings from continuing operations 2,928 2,669 3,321 Discontinued operations, net of tax 6 68 42 Net earnings $ 2,934 $ 2,737 $ 3,363 Basic earnings per share Continuing operations $ 5.35 $ 4.62 $ 5.29 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.36 $ 4.74 $ 5.35 Diluted earnings per share Continuing operations 5.32 $ 4.58 $ 5.25 Discontinued operations 0.01 0.12 0.07 Net earnings per share $ 5.33 $ 4.70 $ 5.31 Weighted average common shares outstanding Basic 546.8 577.6 627.7 Dilutive effect of share-based awards 3.5 4.9 5.2 Diluted 550.3 582.5 632.9 Antidilutive shares 4.1 0.1 Dividends declared per share $ 2.46 $ 2.36 $ 2.20 Note: Per share amounts may not foot due to rounding. Refer to Note 3 for additional information about a reclassification of supply chain-related depreciation expense to Cost of Sales. See accompanying Notes to Consolidated Financial Statements. $ $ $ $