4-38 Four Major Adjustments (Alternat es are 4-35, 4-37, and 4-39.) Columbia Sportswear included the following items in its ecember 31, 2011, balance sheet (S in thousands): Prepaid expenses and other current assets Income taxes payable (a current liability) $36,392 12,579 Analyze the impact of the following assumed transactions on the financial position of Columbia as of January 31, 2012. Prepare your analysis in the same format used when the 1. adjustment process was explained in the chapter. Also show adjusting journal entries. a. On January 31, an adjustment of $728 thousand was made for the rental of various retail outlets that had originally increased Prepaid Expenses but had expired. b. During December 2011, Columbia sold product for $1,019 thousand cash to Dick's Sporting Goods, but delivery was not made until January 28, 2012. Unearned Revenue had been increased in December. No other adjustments had been made since then. Prepare the adjustment on January 31, c. Columbia had loaned cash to several of its independent retail distributors. As of January 31, 2012, the distributors owed $112 thousand of interest that had been unrecorded. d. On January 31, Columbia increased its accrual of federal income taxes by $938 thousand. 2. Compute the ending balances on January 31, 2012, in Prepaid Expenses and in Income Taxes Payable