Target Corporation—like all other businesses—makes adjusting entries at year-end in order to measure assets, liabilities, revenues, and expenses properly. Examine Target Corporation’s balance sheet and income statement in its Fiscal 2018 Annual Report. Visit http://www.pearsonhighered.com/Horngren to view a link to Target Corporation’s annual report.

Requirements

1. Which asset accounts might Target record adjusting entries for? 

2. Which liability accounts might Target record adjusting entries for? 

3. Review Note 11 (Property and Equipment) in the Notes to Consolidated Financial Statements. How are property, plant, and equipment carried on the balance sheet? How is depreciation of these assets calculated? What is the range of useful lives used when depreciating these assets?