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

This case will help you to better understand the effect of adjusting journal entries on the financial statements. You know that adjusting journal entries are entered in the journal and then posted to the ledger accounts. We do not have access to the journals and ledgers used by Columbia Sportswear, but we can see some of the adjusted accounts on the company's financial statements. Refer to the Columbia Sportswear income statements, "Statements of Operations," and the Columbia Sportswear balance sheets, in Appendix A. Also find footnote 7 titled "Property, Plant, and Equipment, Net" and footnote 10 titled "Accrued Liabilities," which are two of the many footnotes included after the financial statements.

Requirements

1. Open T-accounts for the following accounts and their balances as of December 31, 2013. (Note that amounts from the Columbia Sportswear financial statements are in thousands.)

Accumulated Depreciation ............................................... $326,380

Accrued Salaries, Bonus, Vacation, and Other Benefits ................. $ 68,046

Accrued Import Duties .................................................... $ 10,594

Accrued Product Warranties .............................................. $ 10,768

Other Accrued Liabilities .................................................... $30,989

2. Using the following information for Columbia Sportswear's 2014 operations, make the appropriate journal entries.

a. Full payment of the December 31, 2013, balances in the accrued liability accounts

b. Depreciation expense, $19,232

c. Accrued salaries and benefits expense, $74,068

d. Accrued import duty expense, $10,318

e. Accrued product warranty expense, $11,148

f. Accrued other (miscellaneous) expenses, $48,754

3. Post the journal entries to the T-accounts you set up. Check the updated ending balances in each account against the balances reported by Columbia Sportswear as of December 31, 2014?