For this week, my research is on Target Corporation (TGT). The financial statements for this company can be found on the SEC website and Target’s corporate website (Target Corporation Reports Fourth Quarter and Full-Year 2023 Earnings, 2024). The link can be found in the references below. Target is a merchandise retailer like Walmart that sells a wide range of products, such as clothing, household goods, groceries, electronics and toys. It has over 1500 stores across the USA and even operates an e-commerce platform to expand its sales online (About Target Corporation, n.d.). Permanent accounts refer to balance sheet accounts that transfer their balances over the subsequent accounting period (FRANKLIN et al., 2022). These accounts consist of …show more content…
It assesses the company's ability to generate enough revenue and successfully manage its expenses, including the ability to repay loans, make new investments, and finance its operations. An investor can determine the solvency and capital structure of a firm by assessing its assets and liabilities, since this enables them to evaluate the risk associated with lending money to the company. The ledger accounts are cash and cash equivalents, inventory, land, buildings and improvements, fixtures, equipment, computer hardware, computer software, construction in-progress, accumulated depreciation, operating lease, other noncurrent lease, accounts payable, accrued and other current liabilities, common stock, additional paid-in capital, accumulated other comprehensive loss, sales, cost of sales, dividends, and operating income. Both the journal entries and ledger accounts are essential components for the company. Journal entries serve as the first documentation of financial transactions and are essential for maintaining precise and comprehensive financial records. Subsequently, the transactions are transferred to the ledger account in order to systematise and categorise them. Ledger accounts provide a comprehensive record of the opening balance, debits, credits, and closing balance of each account. Ledger accounts are utilised for the purpose of creating financial statements,