Question

Following are selected accounts for Target Corporation. (a) Indicate whether each account appears on the balance sheet (B) or income statement (I). ($ millions)AmountClassification Sales$61,471Answer I Accumulated depreciation7,887Answer B Retained earnings12,761Answer B Depreciation expense1,659Answer I Net income2,849Answer I Property, plant

Answer 1

Answer:

Target Corporation

Accounts that appear on the balance or the income statement:

Balance Sheet:

Accumulated depreciation 7,887

Retained earnings 12,761

Property, plant

Income Statement:

Sales $61,471

Depreciation expense 1,659

Net income 2,849

Explanation:

The accounts that appear on the balance sheet of Target Corporation are permanent accounts, which are not closed to the income summary at the end of its financial period.  These accounts are carried over to the next accounting period.  They include assets, liabilities, and owners' equity.  The accounts that appear on the income statement of Target Corporation are the temporary accounts, which are closed to the income summary at the end of the company's financial period.  The accounts include revenue and expenses, which are compared to extract the net income or loss for the period.