To help familiarize you with the financial reporting of a real company in order to further your understanding of the chapter material you are learning.

Although we do not have access to the journals used by Columbia Sportswear, we can still understand various business transactions on the financial statements in Columbia Sportswear’s annual report. Refer to the Columbia Sportswear income statements, “Statements of Operations,” and the Columbia Sportswear balance sheets in Appendix A. Assume Columbia Sportswear completed the following transactions during January 2016:

Jan 2 Purchased $678,000 of equipment for cash.
8 Had cash sales of $2,512,000.
12 Purchased $3,470,000 of inventory on account.
21 Made $4,515,000 of sales on account.
30 Paid $2,975,000 on account from the January 12 purchase.

Requirements

Look at the financial statements and locate the accounts you included in your journal entries. Note that the balances Columbia Sportswear reported are stated “in thousands,” which means they include millions of dollars in transactions for the year. Imagine how much activity and how many transactions Columbia Sportswear has every day!