jt.3 **Target's Accrued Liabilities Overview (2016 Annual Filing)****Accrued and Other Current Liabilities***(in millions)*| Category | 2016 | 2015 ||------------------------------------------------|-------|-------|| **Wages and benefits** | $884 | $951 || **Gift card liability** | 644 | 612 || **Real estate, sales, and other taxes payable**| 574 | 550 || **Income tax payable** | 502 | 26 || **Dividends payable** | 337 | 333 || **Straight-line rent accrual** | 262 | 255 || **Workers' compensation and general liability**| 146 | 153 || **Interest payable** | 76 | 76 || **Project costs accrual** | 73 | 69 || **Other** | 738 | 758 |**Total** | $4,236| $3,783|### Explanation:This table presents Target's accrued and other current liabilities reported in their 2016 annual filing. It compares various liability categories from 2016 to the previous year, 2015.- **Wages and Benefits**: Decreased from $951 million in 2015 to $884 million in 2016.- **Gift Card Liability**: Increased to $644 million from $612 million.- **Taxes Payable**: Covers real estate, sales, and other taxes, with a slight increase over the year.- **Income Tax Payable**: Notably increased from $26 million to $502 million.- **Dividends and Other Accruals**: Show consistent or slight fluctuations year over year.The total liabilities for 2016 were $4,236 million, up from $3,783 million in 2015, indicating an overall increase in accrued liabilities. **Understanding Gift Card Liability in Retail Accounting**The Gift Card Liability account represents a retailer's unearned revenue. In this scenario, Target has sold $300 worth of gift cards to customers in 2016. The question being addressed is: What is the amount that was transferred into sales revenue in 2016 from the gift card liability account?**Options:**1. $3002. $6443. $2684. $32This multiple-choice question is designed to test your understanding of how unearned revenues from gift cards are recognized as sales revenue once the gift cards are redeemed.

Revenue earned is the amount of unearned revenue earned during the period. It is the amount…

The Gift Card Liability account represents Target's unearned revenue. Assume Targe has sold $300 gift cards to customers in 2016, what is the amount that was transferred into sales revenue in 2016 from the gift card liability account? $300 $644 $268 $32

The Gift Card Liability account represents Target's unearned revenue. Assume Targe has sold $300 gift cards to customers in 2016, what is the amount that was transferred into sales revenue in 2016 from the gift card liability account? $300 $644 $268 $32

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

How to calculate WACC
What is the importance of a Form 8-K? What is the importance of a proxy statement?
Concept of Reconcilation statement with an example .
what is a P&L
8. Enumerate and explain the various application controls.
Describe EVA.
Define transaction
Q5 Distinguish between "report" and "certificate"
Define consol