Question: To help familiarize you with the financial reporting of a

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, 2010:
Jan 3 Purchased $485,000 of equipment for cash.
7 Had cash sales of $26,360,000.
10 Purchased $32,845,000 of inventory on account.
15 Made $642,000 of sales on account.
29 Paid $16,750,000 on account from the January 10 purchase.

1. Prepare journal entries to record the transactions listed. Use the account titles found in the Columbia Sportswear financial statements: Cash; Accounts Receivable; Inventory; Property, Plant, and Equipment; Accounts Payable; and Net Sales.

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  • CreatedApril 29, 2014
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