C$9-1($Algo$)$ Accounting for Operating Activities $($Including Depreciation$)$ and Preparing Financial Statements $($Chapters $3,4,8,$ and $9)[$LO $3-3,4-2,8-2,9-2,9-3]$

Grid Iron Prep Incorporated $($GIPI$)$ is a service business incorporated in January of the current year to provide personal training for athletes aspiring to play college football. The following transactions occurred during the month ended January $31.$

GIPI issued stock in exchange for $$260,000$ cash on $1/01.$

GIPI purchased a gymnasium building and gym equipment on $1/02$ for $$56,000,80\%$ of which related to the gymnasium and $20\%$ to the equipment.

GIPI paid $$300$ cash on $1/03$ to have the gym equipment refurbished before it could be used.

GIPI provided $$6,000$ in training on $1/04$ and expected collection in February.

GIPI collected $$41,000$ cash in training fees on $1/10,$ of which $$38,000$ related to January and $$3,000$ related to February.

GIPI paid $$25,000$ of wages and $$7,200$ in utilities on $1/30.$

GIPI will depreciate the gymnasium building using the straight$-$line method over $10$ years with a residual value of $$5,500.$ Gym equipment will be depreciated using the double$-$declining$-$balance method, with an estimated residual value of $$3,500$ at the end of its four$-$year useful life. Record depreciation on $1/31$ equal to one$-$twelfth the yearly amount.

GIPI received a bill on $1/31$ for $$340$ for advertising done on $1/31.$ The bill has not been paid or recorded.

GIPI uses the aging method for estimating doubtful accounts and, on $1/31,$ will record an estimated $3$ percent of its under$-30-$day$-$old accounts as not collectible.

GIPI$$s income tax rate is $30\%.$ Assume depreciation for tax is the same amount as depreciation for financial reporting purposes.