C9-1 (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] Gid Iron Prep Incorporated (GIP) is a service business incorporated in January of the current year to provide personal training for othletes aspiring to play college football. The following transactions occurred during the month ended January 31 . a. GIPI issued stock in exchange for $180,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $56,000,80% of which related to the gymnasium and 205 to the equipment. c. GIPI poid $500 cash on 103 to have the gym equipment refurbished before it could be used, a. GIPI provided $5.000 in training on 1/04 and expected collection in February. e. GIPI collected $44,000 cash in training fees on 1/10, of which $39,000 related to January and $5,000 retated to February. 1. GIPI paid $25,000 of wages and $8,500 in utilites on 1/30. 9. GIPI will depreciate the gymnasium building using the straight-tine method over 10 years with a residual value of $6.000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $2.500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-tweith the yearly amount. n. GIPI recelved a bili on 1/31 for $120 for advertising done on 1/31. The bill has not been paid or recorded. 1. GiPl uses the aging method for estimating doubtful accounts and, on 1/31, will record an estimated 3 percent of ats under.30-day-old accounts as not collectible. 1. GIPI's income tax rate is 30\%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes Prepare journal entries to record the transactions and adjustments listed in (a) to (j). Review the accounts as shown in the General Ledger and Trial Balence tabs. (If no entry is required for a transaction/event, select "No Joumal Entry Required" in the first accouint feld. Round your final answers to the nearest whole dollar amount.) (1) GIPI issued stock in exchange for $180,000 cash on 1/01. Record the transaction. 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. Record the transaction. GIPI paid $500 cash on 1/03 to have the gym equipment refurbished before it could be usij. Record the transaction. GIPI provided $5,000 in training on 1/04 and expected collection in February. Record the transaction. GIPI collected $44,000 cash in training fees on 1/10, of Note : = journal entry has been entered GIPI collected $44,000 cash in training fees on 1/10, of which $39,000 related to January and $5,000 related to February. Record the transaction. GIPI paid $25,000 of wages and $8,500 in utilities on 1/30. Record the transaction. GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $6,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $2,500 at the enghof its four-year useful life. Record depreciation on 1/31 \&wal to one-twelfth the yearly amount. Record the transaction. 8. GIPI received a bill on 1/31 for $120 for advertisina done residuai value or $
