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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] Grid
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] 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 a. GIPI issued stock in exchange for $160,000 cash on V01. b. GIPI purchased a gymnasium buliding and gym equipment on 1/02 for $56,000,80% of which related to the gymnasium and 20% to the equipment, c. GIPI paid $300 cash on 103 to have the gym equipment refurbished before it could be used. d. GIPI provided $10,000 in training on 104 and expected collection in February. e. GIPI collected $42,000 cash in training fees on 1/10, of which $39,000 related to January and $3,000 related to February. t. GIPI paid $29,500 of wages and $8,000 in utilities on 1/30. g. GiPI will depreciate the gymnasium building using the straight-line method over 10 years with aresidual value of $5,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $4,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-tweith the yearly amount. h. Gipl recelved a bill on 1/31 for $670 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 porcent of its under-30-day-old accounts as not collectible. J. Gipl'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 (1). Review the accounts as shown in the General Ledger and Trial Balance tabs, (If no entry is required for a transaction/event, select "No Joumal Entry Required" in the first account field. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet 1 (2) (3) 4 5 6 8 9 GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $5,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $4,500 at the end of its four-year useful life. Record Note: Enter debits before credits. Journal entry worksheet (1) 2 (3) 4 8 9 over 10 years witn a resicuar value or $5,000. Gym equipment win oe depreciated using the double-declining-balance method, with an estimated residual value of $4,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount. Record the transaction. Note: Enter debits before credits. Journal entry worksheet GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Record the transaction. Note: Enter debits before credits. . GIPl's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting pur Use the dropdowns to select 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.) 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] 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 a. GIPI issued stock in exchange for $160,000 cash on V01. b. GIPI purchased a gymnasium buliding and gym equipment on 1/02 for $56,000,80% of which related to the gymnasium and 20% to the equipment, c. GIPI paid $300 cash on 103 to have the gym equipment refurbished before it could be used. d. GIPI provided $10,000 in training on 104 and expected collection in February. e. GIPI collected $42,000 cash in training fees on 1/10, of which $39,000 related to January and $3,000 related to February. t. GIPI paid $29,500 of wages and $8,000 in utilities on 1/30. g. GiPI will depreciate the gymnasium building using the straight-line method over 10 years with aresidual value of $5,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $4,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-tweith the yearly amount. h. Gipl recelved a bill on 1/31 for $670 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 porcent of its under-30-day-old accounts as not collectible. J. Gipl'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 (1). Review the accounts as shown in the General Ledger and Trial Balance tabs, (If no entry is required for a transaction/event, select "No Joumal Entry Required" in the first account field. Round your final answers to the nearest whole dollar amount.) Journal entry worksheet 1 (2) (3) 4 5 6 8 9 GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $5,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $4,500 at the end of its four-year useful life. Record Note: Enter debits before credits. Journal entry worksheet (1) 2 (3) 4 8 9 over 10 years witn a resicuar value or $5,000. Gym equipment win oe depreciated using the double-declining-balance method, with an estimated residual value of $4,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount. Record the transaction. Note: Enter debits before credits. Journal entry worksheet GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Record the transaction. Note: Enter debits before credits. . GIPl's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting pur Use the dropdowns to select 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.)
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