ces 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 $220,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $60,000, 80% of which related to the gymnasium and 20% to the equipment. c. GIPI paid $400 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $9,000 in training on 1/04 and expected collection in February. e. GIPI collected $39,000 cash in training fees on 1/10, of which $35,000 related to January and $4,000 related to February. GIPI paid $21,000 of wages and $10,500 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 $3,500. 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-twelfth the yearly amount. h. GIPI received a bill on 1/31 for $580 for advertising done on 1/31. The bill has not been paid or recorded. IGIPI 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 Journal entry worksheet 1 2 3 4 5 6 7 8 9 GIPI Issued stock in exchange for $220,000 cash on 1/01. Record the transaction. Note: Enter debits before credits. Date January 01 10 10 General Journal Debit Credit Record entry Clear entry View general journal Statement of Requirement General Journal General Ledger Trial Balance. Income. Statement Retained Balance Sheet Earnings 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 > GRID IRON PREP INCORPORATED Income Statement For the Month Ended January 31 Income before Income Tax Expense GRID IRON PREP INCORPORATED Statement of Retained Earnings For the Month Ended January 31 Balance, January 1 Dividends Balance, January 31 GRID IRON PREP INCORPORATED Balance Sheet As of January 31