Tom's Biking, a retailer of biking equipment, has hired you as an accountant to record journal entries and prepare the financial statements for the first month of business ending April 30, 2023. Toms biking was founded by Jeff Cow, one of Toms friends, along with some other outside investors. Although Jeff Cow and his friends contributed capital to the company the daily controls are handled by Tom. Toms biking pays a divided every month to anyone who has contributed capital

Using the following data provided below please create a Income Statement and Statement of Retained Earning

During April 2023 the following activities occurred:

4/1/2023 Jeff Cow and 2 other friends each contributed $100,000 capital to Tom's Biking.

4/1/2023 $48,000 was paid in advance for 1 year of rent.

4/2/2023 Tom's Biking purchased $60,000 of bikes and helmets (inventory) with cash.

4/3/2023 Tom's Biking borrowed $50,000 on a 6 year, 8% annual interest loan from America Bank.

4/4/2023 Received and paid a $300 bill for a radio advertisement that aired on 4/4/23.

4/5/2023 Purchased office supplies costing $4,000 on account.

4/5/2023 Sold a one of a kind bike worth $800 to Liam Wilson for $12,500 cash.

4/5/2023 Purchased computers and cash registers for business use with $15,000 cash.

4/7/2023 Purchased spare bike parts (inventory) for $2,000 on account.

4/8/2023 Paid cash for half of office supplies purchased on credit earlier in the month.

4/9/2023 Sold $3,000 of bikes to Henry foster for $8,000 on account with terms 2/10, n/30.

4/10/2023 Jackson's Biking established a petty cash fund in the amount of $1,000.

4/11/2023 Sold $5,000 of bikes to Ava Reed for $12,000 on account with terms 2/10, n/30.

4/12/2023 Henry Foster paid Tom's Biking for the bikes purchased earlier in the month.

4/15/2023 An analysis of inventory indicated that some bikes were obsolete (i.e., damanged by a customer) and recorded above market value. An inventory write down of $1,000 is required.

4/15/2023 Tom's Biking sold 3 gift cards for $500 each. No merchandise was sold at this time.

4/18/2023 Sold a bike and helmet worth $500 total to James Young for $1,800.

4/23/2023 Received $2,700 from a customer for 3 bikes to be delivered in August.

4/24/2023 Ava Reed paid Tom's Biking for purchases earlier in the month.

4/26/2023 Returned $900 of spare parts back to the supplier from the 4/7 transaction. Tom has not received the cash refund yet.

4/27/2023 Sold $500 of bike tires to Ben Rogers for $700 on account with no discount terms.

4/29/2023 James Young returned the bike and helmet purchased earlier in the month. Tom offered a full refund to James.

4/30/2023 Petty Cash was replenished for $800 to cover a promotion made at a Jets game (advertising expense).

4/30/2023 Paid wages to employees for April totaling $18,000. 4/30/2023 Paid dividends totaling $3,000.