C9-1 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 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 1. GIPI issued stock in exchange for $100,000 cash on 101 2. GlPl purchased a gymnasium building and gym equipment on 1/02 for $50,000, 80% of which related to the gymnasium and 20% to the equipment. 3. GIPI paid $260 cash on 1103 to have the gym equipment refurbished before it could be used 4. GIPI provided $4,000 in training on 1/04 and expected collection in February. 5. GIPI collected $36,000 cash in training fees on 1/10, of which $34,000 was earned in January and $2,000 would be earned in February 6. GIPI paid $23,000 of wages and S7,000 in utilities on 1130 7. GIPI will depreciate the gymnasium building using the straight-line method over 20 years with a residual value of $2,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $2,250 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount. 8. GIPI received a bill on 1/31 for $350 for advertising done on 1/31. The bill has not been paid 9. GIPI uses the aging method for estimating doubtful accounts and, on 1/31, will record an estimated 3 10. GIP's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for or recorded percent of its under 30 day-old accounts as not collectible financial reporting purposes. Journal entry worksheet 2 5 7 8 10 GIPI issued stock in exchange for $100,000 cash on 1/01. Record the transaction. Note: Enter debits before credits. Date General Journal Debit Credit Jan 01 Record entry Clear entry View general journal Statement of General Trial BalanceStatement Earnings General Income Requirement Journa Retained Balance Sheet Ledger General Ledger values will be used to populate the income statement and balance sheet tabs............ GRID IRON PREP INC Trial Balance January 31, 2019 Account Title Debit Credit Total O S General Ledger Income Statement> General Trial Balance StatementEarnings Statement of Income Requirement General Retained Balance Sheet Journal 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. GRID IRON PREP INC Income Statement For the Month Ended January 31 Income before Income Tax Expense Trial Balance Statement of Retained Earnings> Statement of Genera Trial BalanceStatementEarnings Ledger IncomeR Requirement General Retained Balance Sheet EarningsE Journal 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. GRID IRON PREP, INC Statement of Retained Earnings For the Month Ended January 31 Balance, January 1 Balance, January 31 Income Statement Balance Sheet Statement of Trial Balance Statement Earnings Income Requirement General Retained Balance Sheet Journal Ledger 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. GRID IRON PREP INC Balance Sheet As of January 31 0 Statement of General Ledger Income Requirement General Trial Balance Statement Retained Balance Sheet Earnings Journal Each journal entry is posted automatically to the general ledger. General Ledger Account Data is not available until journal entries have been entered General Journal Trial Balance