Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Calculating left side middle, income tax please bad debtPNNG Photo List of ranactienPNG-Photes See all photos Grid Iron Prep Inc. (GIPI) is a service business

Calculating left side middle, income tax please image text in transcribed
bad debtPNNG Photo List of ranactienPNG-Photes See all photos Grid Iron Prep Inc. (GIPI) is a service business incorporated in January of the current year to personal training month ended January 31 provide for athletes aspring to play college tootbal The following transactions occurred during the GIPI issued stock in exchange for $100,000 cash on 1/01 GIP, purchased agymnasum builing and gym eg prent on 102 tor550,000, 80% or which related to onnasum GiIPI paid $260 cash on 1/03 to have the gym equipment returbished before it could be used ard 20% to the equipment provided S4,000 in training on 1/04 and expected collection in February Jan 31 Bad Debt Expense AIl iP collected $36,000 cash in training lees on t/10, of which $34,000 was earned in January and $2,000 would be eamed in February 6. GIPI paid $23,000 of wages and $7,000 in ubities on 1/30 GiPI wl deprecdiate the gymnasium building using the straight-ine method over 20 years with a residual value of $2.000. Gym equpment wll be depreciated using the double decining-balance method, wth an estimated residual value of $2 250 at the end of its four-year useful lide. Record depreciation on 1/31 equal to one twelth the yearly amount GPl received a bilonal for S350for advertisng done on 1/31 The ba na s not been paid or recorded C | Not secure I erto.mheduca t o .contr tpx? 0200524959957 732 1. 732_1-ta a | a GIFTS income tax rate is 30%. Assume depredation for tax is the same amount as depreciation for finandial reporting purposes. Record the OIPl uses the aging method for estimating doubetul accounts and, on 1/31, wl record an estimated 3 percent of its under 30 day-old accounts as not collectible 10 GIPTS i ncorme tas rate is 30% Assume deprecation for tax is te same amort as depreciation for Note: Enter dels more accounts necelvable.PNG-Photos See all photos x- 4000 an 04 Accounts Receivable Service Revenue 4,000 Jan 10 Cash Service Revenue Uneamed Revenue 34000

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Global Financial Accounting And Reporting Principles And Analysis

Authors: Peter Walton, Walter Aerts

1st Edition

1844802655, 9781844802654

More Books

Students also viewed these Accounting questions

Question

12. What are their values? (ethical stance in society)

Answered: 1 week ago