Target Corporation prepares its financial statements according to U$.$S$.$ GAAP. Target$$s financial statements and disclosure notes for the year ended February $1,2020,$ are available here. This material is also available under the Investor Relations link at the company$$s website $($www$.$target.com$).$

Note: Use tables, Excel, or a financial calculator. $($FV of $$1,$ PV of $$1,$ FVA of $$1,$ PVA of $$1,$ FVAD of $$1$ and PVAD of $$1)$

Required:

Note $17$ indicates that Target$$s finance lease liability at February $1,2020$ is $$1,370(=$ $$67$ current $+$ $$1,303$ noncurrent$)$ while its finance lease assets are $$1,180.$ Why do the asset and liability amounts differ?

Target$$s finance lease assets are listed on February $1,2020,$ at $$1,180$ million. What was the original amount recorded for these specific right$-$of$-$use assets when the leases commenced?

Refer to Target$$s Statement of Cash Flows. Prepare a journal entry that summarizes Target$$s acquisition of assets by operating lease for the twelve months ended February $1,2020.$

Answer rating: 100% (QA)

Answer The difference between Targets finance lease liability and finance lease assets arises b... View the full answer