Grid Iron Prep Inc. (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.

1. GIPI issued stock in exchange for $290,000 cash on 1/01.
2. GIPI purchased a gymnasium building and gym equipment on 1/02 for $53,000, 80% of which related to the gymnasium and 20% to the equipment.
3. GIPI paid $600 cash on 1/03 to have the gym equipment refurbished before it could be used.
4. GIPI provided $9,000 in training on 1/04 and expected collection in February.
5. GIPI collected $39,000 cash in training fees on 1/10, of which $33,000 related to January and $6,000 related to February.
6. GIPI paid $24,000 of wages and $7,000 in utilities on 1/30.
7. 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 $2,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount.
8. GIPI received a bill on 1/31 for $290 for advertising done on 1/31. The bill has not been paid or recorded.
9. 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.
10. GIPIs income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes.

Statement of General General Income Requirement Trial Balance Retained Balance Sheet Journal Ledger Statement Earnings Prepare journal entries to record the transactions and adjustments listed in (a)-6). 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.) No Date General Journal Credit Debit 290.000 Jan 01 Cash Common Stock 290,000 Jan 02 Buildings Equipment 42.400 10.600 Cash 53,000 Jan 03 Equipment 600 Cash 800 Jan 04 9,000 Accounts Receivable Service Revenue 9.000 Jan 10 39,000 Cash Deferred Revenue Service Revenue 6.000 33.000 Jan 30 Salaries and Wages Expense Utilities Expense Cash 24,000 7.000 31.000 31 778 XI Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment 328 450 X 31 290 Advertising Expense Accounts Payable 290 Jan 31 270 Bad Debt Expense Allowance for Doubtful Accounts Jan 31 2.899 Income Tax Expense Income Tax Payable 2.899 X GRID IRON PREP INC. Income Statement For the Month Ended January 31 Revenue Service Revenue 42.000 0 Expenses Salaries and Wages Expense Utilities Expense Depreciation Expense Advertising Expense Bad Debt Expense OOOOOOOO 24.000 7,000 778 290 270 $ Total Expenses Income before Income Tax Expense Income Tax Expense Net Income Ooo 32,338 9.662 X 2.899 6,763 - $ GRID IRON PREP, INC Statement of Retained Earnings For the Month Ended January 31 Balance, January 1 Net Income Less: Dividends Balance, January 31 8.763 0 6.763 244,400 8.730 253,130 42,072 10.750 305.052 GRID IRON PREP INC. Balance Sheet As of January 31 Assets Current Assets Cash Accounts Receivable Total Current Assets Buildings Equipment Total Assets Liabilities Current Liabilities Accounts Payable Deferred Revenue Income Tax Payable Total Current Liabilities Stockholder's Equity Common Stock Retained Earnings Total Stockholders' Equity Total Liabilities and Stockholders' Equity OOOO OOOOO OOOOOOO 290 6.000 2.899 9.189 290,000 6,783 % 296.763 305.952