Congratulations, you were just recently hired by Bailey's Boating World, Inc. as their new accounting inter...

 

 

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Congratulations, you were just recently hired by Bailey's Boating World, Inc. as their new accounting inter 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. Unadjusted Trial Balance April 30, 2023 Bailey's Boating World, Inc. Unadjusted Trial Balance April 30, 2022 ($s in Thousands) 40,000 ($s in Thousands) Account Debit Credit Account Cash and cash equivalents Accounts receivable Inventory 7,000 247,000 Cash and cash equivalents 260,000 AFS Investments 57,000 Accounts receivable Inventory AFS Investments Property, plant, and equipment 510,000 Property, plant, and equipment Loan to Amy's Anchors (long-term) 40,000 Loan to Amy's Anchors (long-term) Accounts payable 310,000 Accrued liabilities 20,000 Accounts payable Accrued liabilities Income taxes payable 45,000 Income taxes payable. Bonds payable Accumulated depreciation Common stock Additional Paid in Capital Treasury stock Accumulated Other Comprehensive Income Retained earnings Gain on sale of equipment Interest revenue Debit 21,000 Credit 170,000 230,000 44,000 400,000 250,000 30,000 42,000 190,000 Bonds payable 70,000 132,000 Accumulated depreciation 120.000 100,000 Common stock 85.000 220,000 Additional Paid in Capital 183,400 Treasury stock 15,000 20,000 Accumulated Other Comprehensive Income 16,600 68,000 Retained eamings 41,000 8,000 Gain on sale of equipment 30,000 Interest revenue Sales revenue 870,000 Sales revenue Cost of goods sold 500,000 Cost of goods sold Advertising expense Salaries expense Supplies expense Legal expenses Utilities expense Other SG&A expenses Income tax expense 12,000 65,000 28,300 112,700 48,910 61,090 24,000 $ 2,013,000 $ 2,013,000 Advertising expense Salaries expense Supplies expense Legal expenses Utilities expense Other SG&A expenses Income tax expense $ 1,620,000 $ 28,000 754,000 389,000 8,500 52,190 24,760 98,000 46,000 102,550 19,000 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 $4,600 in 2023 (amount is net of tax and the adjustments have already been made in the balances of the trial above). 10,000,000 and 8,500,000 shares of common stock were outstanding throughout 2023 and 2022, respectively. You received the following instructions from your supervisor. Last year's inter did not complete this task appropriately, so some of the 2022 statements need to be prepared again to have an accurate starting point. You need to start by preparing the income statement (including EPS) and balance sheet as of April 30, 2022. Once 2022 statements are prepared, you then need to prepare the income statement (including EPS), statement of comprehensive income, statement of stockholders' equity, balance sheet, and statement of cash flows as of April 30, 2023. For all statements be sure to include: Proper headings for your statements Correct format for your statements (current, non-current, single underlines, double underlines, etc.) Numbers in the financials should be either linked to the values from this tab or a formula. Any unnecessary hard coded numbers will be marked incorrect. Good luck! Congratulations, you were just recently hired by Bailey's Boating World, Inc. as their new accounting inter this summer! Your first job is to prepare their financial statements for their year ended April 30, 2023. Use the adjusted trial balances below to prepare the appropriate statements. Please read through your instructions carefully before you begin your assignment. Bailey's Boating World, Inc. Unadjusted Trial Balance April 30, 2023 Bailey's Boating World, Inc. Unadjusted Trial Balance April 30, 2022 ($s in Thousands) 40,000 ($s in Thousands) Account Debit Credit Account Cash and cash equivalents Accounts receivable Inventory 7,000 247,000 Cash and cash equivalents 260,000 AFS Investments 57,000 Accounts receivable Inventory AFS Investments Property, plant, and equipment 510,000 Property, plant, and equipment Loan to Amy's Anchors (long-term) 40,000 Loan to Amy's Anchors (long-term) Accounts payable 310,000 Accrued liabilities 20,000 Accounts payable Accrued liabilities Income taxes payable 45,000 Income taxes payable. Bonds payable Accumulated depreciation Common stock Additional Paid in Capital Treasury stock Accumulated Other Comprehensive Income Retained earnings Gain on sale of equipment Interest revenue Debit 21,000 Credit 170,000 230,000 44,000 400,000 250,000 30,000 42,000 190,000 Bonds payable 70,000 132,000 Accumulated depreciation 120.000 100,000 Common stock 85.000 220,000 Additional Paid in Capital 183,400 Treasury stock 15,000 20,000 Accumulated Other Comprehensive Income 16,600 68,000 Retained eamings 41,000 8,000 Gain on sale of equipment 30,000 Interest revenue Sales revenue 870,000 Sales revenue Cost of goods sold 500,000 Cost of goods sold Advertising expense Salaries expense Supplies expense Legal expenses Utilities expense Other SG&A expenses Income tax expense 12,000 65,000 28,300 112,700 48,910 61,090 24,000 $ 2,013,000 $ 2,013,000 Advertising expense Salaries expense Supplies expense Legal expenses Utilities expense Other SG&A expenses Income tax expense $ 1,620,000 $ 28,000 754,000 389,000 8,500 52,190 24,760 98,000 46,000 102,550 19,000 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 inter 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. Good luck!