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 $210,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $61,000, 80% of which related to the gymnasium and 20% to the equipment. c. GIPI paid $300 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $8,000 in training on 1/04 and expected collection in February. e. GIPI collected $40,000 cash in training fees on 1/10, of which $37,000 related to January and $3,000 related to February. f. GIPI paid $22,000 of wages and $10,000 in utilities on 1/30. 9. GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $3,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $4,000 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 $530 for advertising done on 1/31. The bill has not been paid or recorded. 1. GIPI 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 Prepare journal entries to record the transactions and adjustments listed in (a) to (). Review the accounts as shown in the General Ledger and Trial Balance tabs. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Round your final answers to the nearest whole dollar amount.) View transaction list View journal entry worksheet No Date General Journal 1 January 01 Cash Common Stock 2 January 02 Buildings Debit Credit 210,000 48.8001 210,000 Journal entry worksheet < 1 2 3 4 5 6 7 8 9 10 > GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $3,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $4,000 at the end of its four-year useful life. Record Note: Enter debits before credits. Date General Journal January 31 Depreciation Expense Debit Credit 521 Record entry Clear entry View general journal Use the dropdowns to select the appropriate accounts to be rep calculate and enter the amount of the Income before Income T final answers to the nearest whole dollar amount.) GRID IRON PREP INCORPORATED Income Statement For the Month Ended January 31 Income before Income Tax Expense < Trial Balance 69 $ 0 0 0 0 0 0 0 0 69 $ 0 0 f. GIPI paid $22,000 of wages and $10,000 in utilities on 1/30. g. GIPI will depreciate the gymnasium building using the straig equipment will be depreciated using the double-declining-b its four-year useful life. Record depreciation on 1/31 equal to h. GIPI received a bill on 1/31 for $530 for advertising done on i. GIPI uses the aging method for estimating doubtful account accounts as not collectible. j. GIPI's income tax rate is 30%. Assume depreciation for tax is Requirement General Journal General Ledger Inco Trial Balance Staten Prepare the statement of retained earnings for the month ended accounts and balances to prepare the Statement of Retained Ear amount.) 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 10 $ $ 0 < Statement of Retained Earnings 0 0 0 0 0