C9-1 Accounting for Operating Activities (Including Depreciation) and Preparing Financial Statements (Chapters 3, 4, 8, and 9) (LO 3-3, 4-2, 8-29-2, 9-3] Grid Iron Prep Inc. (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. a. GIPI issued stock in exchange for $200,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $62,000, 80% of which related to the gymnasium and 20% to the equipment C. GIPI paid $200 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $7,000 in training on 1/04 and expected collection in February e. GIPI collected $45,000 cash in training fees on 1/10, of which $43,000 related to January and $2,000 related to February. f GIPI paid $27,000 of wages and $9.500 in utilities on 1/30. g. GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $2,500. 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. h. GIPI received a bill on 1/31 for $480 for advertising done on 1/31. The bill has not been paid or recorded. 1. 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. j. GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet General Journal tab - Prepare journal entries to record the transactions and adjustments listed in (a)-6). Review the accounts as shown in the General Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - You may view the trial balance. Income Statement tab - Use the drop-down to select the accounts properly included on the income statement. Statement of Retained Earnings tab - Prepare the statement of retained earnings for the month ended January 31. Balance Sheet tab - Use the drop-down to select the accounts to properly included on the balance sheet. Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Prepare journal entries to record the transactions and adjustments listed in (a)-(). Review the accounts as shown in the General Ledger and Trial Balance tabs. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Round your final answers to the nearest whole dollar amount.) View transaction list Journal entry worksheet 2 3 4 5 6 7 8 9 10 GIPI issued stock in exchange for $200,000 cash on 1/01. Record the transaction. Note: Enter debits before credits. General Journal Debit Credit Date Jan 01 Record entry Clear entry View general journal Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet The option you choose will be the values used to populate the income statement and balance sheet tabs. GRID IRON PREP INC. Trial Balance January 31, 2019 Account Title Debit Credit Total ols Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Choose the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter the amount of the Income before Income Tax Expense and net income or loss for the period. (Round your final answers to the nearest whole dollar amount.) GRID IRON PREP INC. Income Statement For the Month Ended January 31 Income before Income Tax Expense Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Prepare the statement of retained earnings for the month ended January 31. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. (Round your final answers to the nearest whole dollar amount.) GRID IRON PREP, INC Statement of Retained Earnings For the Month Ended January 31 Balance, January 1 Balance, January 31 Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Use the dropdowns to select the accounts properly included on the balance sheet. However, you will need to enter the amount of the Accounts receivable (net of Allowance for Doubtful Accounts), Buildings, Equipment (net of Accumulated Depreciation), Common stock and Retained earnings. (Round your final answers to the nearest whole dollar amount.) GRID IRON PREP INC. Balance Sheet As of January 31