Congratulations, you were just recently hired by Bailey's Boating World, Inc. as their new accounting intern this summer! Your first job is to prepare their financial

statements for their year ended April $30,2023.$ Use the adjusted trial balances below to prepare the appropriate statements. Please read through your instructions carefully

before you begin your assignment.

Bailey's Boating World, Inc. Bailey's Boating World, Inc.

Unadjusted Trial Balance Unadjusted Trial Balance

April $30,2023$ April $30,2022$

$($$s in Thousands$)($$s in Thousands$)$

Account Debit Credit Account Debit Credit

Cash and cash equivalents $7,000$ Cash and cash equivalents $21,000$

Accounts receivable $247,000$ Accounts receivable $170,000$

Inventory $260,000$ Inventory $230,000$

AFS Investments $57,000$ AFS Investments $44,000$

Property, plant, and equipment $510,000$ Property, plant, and equipment $400,000$

Loan to Amy's Anchors $($long$-$term$)40,000$ Loan to Amy's Anchors $($long$-$term$)-$

Accounts payable $310,000$ Accounts payable $250,000$

Accrued liabilities $20,000$ Accrued liabilities $30,000$

Income taxes payable $45,000$ Income taxes payable $42,000$

Bonds payable $190,000$ Bonds payable $70,000$

Accumulated depreciation $132,000$ Accumulated depreciation $120,000$

Common stock $100,000$ Common stock $85,000$

Additional Paid in Capital $220,000$ Additional Paid in Capital $183,400$

Treasury stock $40,000$ Treasury stock $15,000$

Accumulated Other Comprehensive Income $20,000$ Accumulated Other Comprehensive Income $16,600$

Retained earnings $68,000$ Retained earnings $41,000$

Gain on sale of equipment $8,000$ Gain on sale of equipment $-$

Interest revenue $30,000$ Interest revenue $28,000$

Sales revenue $870,000$ Sales revenue $754,000$

Cost of goods sold $500,000$ Cost of goods sold $389,000$

Advertising expense $12,000$ Advertising expense $8,500$

Salaries expense $65,000$ Salaries expense $52,190$

Supplies expense $28,300$ Supplies expense $24,760$

Legal expenses $112,700$ Legal expenses $98,000$

Utilities expense $48,910$ Utilities expense $46,000$

Other SG&A expenses $61,090$ Other SG&A expenses $102,550$

Income tax expense $24,000$ Income tax expense $19,000$

$$2,013,000$ $$2,013,000$ $$1,620,000$ $$1,620,000$

Additional Information $($$s in thousands & amounts already included in trial above unless otherwise noted$)$:

Equipment that had cost $$40,000$ and on which there was accumulated depreciation of $$30,000$ was sold during $2023$ for $$18,000.$

Bailey's declared and paid a cash dividend during $2023.$

Bailey's did not retire any bonds during $2023$ or $2022.$ They issued new shares of common stock in $2023$ for $$55,000.$

The AFS investment portfolio held an unrealized holding gain of $3,400$ at April $30,2023($amount is net of tax and the adjustments have already been made in the balances of the trial above$).$

Bailey's repurchased additional shares of treasury stock during $2023.$

They experienced a negative pension plan adjustment of $$4,600$ in $2023($amount is net of tax and the adjustments have already been made in the balances of the trial above$).$

$10,000,000$ and $8,500,000$ shares of common stock were outstanding throughout $2023$ and $2022,$ respectively.

You received the following instructions from your supervisor:

Last year's intern did not complete this task appropriately, so some of the $2022$ statements need to be prepared again to have an accurate starting point.

You need to start by preparing the income statement $($including EPS$)$ and balance sheet as of April $30,2022.$

Once $2022$ statements are prepared, you then need to prepare the income statement $($including EPS$),$ statement of comprehensive income, statement of stockholders' equity,

balance sheet, and statement of cash flows as of April $30,2023.$

For all statements be sure to include:

Proper headings for your statements

Correct format for your statements $($current$,$ non$-$current, single underlines, double underlines, etc.$)$

Numbers in the financials should be either linked to the values from this tab or a formula. Any unnecessary hard coded numbers will be marked incorrect.