Columbia Sportswear is one of the largest outdoor apparel, footwear, accessories, and equipment companies in the world. Examine the following balance sheet values, which are slightly revised from Columbia’s annual report:

Consider the following assumed partial summary of transactions for the first three months of 2012 ($ in millions):
a. Acquired inventories for $286.9 on open account.
b. Sold inventories that cost $239.7 for $423.5 on open account.
c. Collected $410.6 on open account.
d. Disbursed $231.3 on open accounts payable.
e. Paid cash of $15 for advertising expenses. (Use an Operating Expenses account.)
f. Paid rent and insurance premiums in cash in advance, $11. (Use a Prepaid Expenses account.)
g. Prepaid expenses expired, $18. (Use an Operating Expenses account.)
h. Other liabilities paid in cash, $22.3.
i. Interest expense of $4 was paid in cash. (Use an Interest Expense account.)
j. Depreciation of $16 was recognized. [Use an Operating Expenses account; instead of creating an Accumulated Depreciation account, reduce the Property and Equipment (net) account directly.]
k. Additional shares were sold for $6 in cash. (Record as an increase to Paid-in Capital.)

Required
1. Record the transactions in the journal.
2. Enter beginning balances in T-accounts. Post the journal entries to the T-accounts. Key your entries with the transaction letters used here.
3. Prepare a trial balance for the three months ended March 31, 2012.
4. Explain why cash increased during the first three months of 2012.

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Columbla Sportswear Balance Sheet Values December 31, 2011 ( in millions) Cash Accounts receivable Prepaid expenses Inventories Property and equipment, net Other assets Accounts payable Other liabilities Paid-in capital Retained earnings Total $ 241.0 351.5 36.4 365.2 250.9 137.5 $149.0 159.0 49.9 1,024.6 $1,382.5 $1,382.5