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. a. GIPI issued stock in exchange for $200,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $62,000, 80% of which related to the gymnasium and 20% t the equipment. C GIPI paid $200 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $7,000 in training on 1/04 and expected collection in February e. GIPI collected $45,000 cash in training fees on 1/10, of which $43,000 related to January and $2,000 related to February. f GIPI paid $27,000 of wages and $9,500 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 $2,500. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end 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 $480 for advertising done on 1/31. The bill has not been paid or recorded. I GIPI uses the aging method for estimating doubtful accounts and, on 1/31, will record an estimated 3 percent of its under-30-day-ol accounts as not collectible. i 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 Inc Stat Prepare the statement of retained earnings for the month ende accounts and balances to prepare the Statement of Retained E amount.) GRID IRON PREP, INC Statement of Retained Earnings For the Month Ended January 31 Balance, January 1 Net Income Less: Dividends Balance, January 31 7,724 7,724 GRID IRON PREP INC. Balance Sheet As of January 31 Assets Current Assets Cash 146,300 7,000 153,300 12,600 Total Current Assets Equipment Total Assets $ 165,900 Liabilities Current Liabilities $ Stockholder's Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Choose the appropriate accounts to be reported on the incom amount of the Income before Income Tax Expense and net in nearest whole dollar amount.) GRID IRON PREP INC. Income Statement For the Month Ended January 31 Revenue Service Revenue $ 50,000 A Expenses Salaries and Wages Expense Utilities Expense Depreciation Expense Advertising Expense Bad Debt Expense 27,000 9,500 918 480 210 $ Total Expenses Income before Income Tax Expense Income Tax Expense Net Income 38, 108 11,892 4,168 7,724 $ GRID IRON PREP INC. Trial Balance January 31, 2019 Account Title Credit Cash $ Debit 146,300 7,000 210 49,600 393 12,600 Accounts Receivable Allowance for Doubtful Accounts Buildings Accumulated DepreciationBuildings Equipment Accumulated Depreciation-Equipment Accounts Payable Income Tax Payable Deferred Revenue Common Stock Service Revenue Advertising Expense Bad Debt Expense Depreciation Expense Salaries and Wages Expense Utilities Expense Income Tax Expense Total 525 480 4,168 2,000 200,000 50,000 480 210 918 27,000 9,500 4,168 257,776 $ 257,776 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. a. GIPI issued stock in exchange for $200,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $62,000, 80% of which related to the gymnasium and 20% t the equipment. C GIPI paid $200 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $7,000 in training on 1/04 and expected collection in February e. GIPI collected $45,000 cash in training fees on 1/10, of which $43,000 related to January and $2,000 related to February. f GIPI paid $27,000 of wages and $9,500 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 $2,500. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end 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 $480 for advertising done on 1/31. The bill has not been paid or recorded. I GIPI uses the aging method for estimating doubtful accounts and, on 1/31, will record an estimated 3 percent of its under-30-day-ol accounts as not collectible. i 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 Inc Stat Prepare the statement of retained earnings for the month ende accounts and balances to prepare the Statement of Retained E amount.) GRID IRON PREP, INC Statement of Retained Earnings For the Month Ended January 31 Balance, January 1 Net Income Less: Dividends Balance, January 31 7,724 7,724 GRID IRON PREP INC. Balance Sheet As of January 31 Assets Current Assets Cash 146,300 7,000 153,300 12,600 Total Current Assets Equipment Total Assets $ 165,900 Liabilities Current Liabilities $ Stockholder's Equity Total Stockholders' Equity Total Liabilities and Stockholders' Equity Choose the appropriate accounts to be reported on the incom amount of the Income before Income Tax Expense and net in nearest whole dollar amount.) GRID IRON PREP INC. Income Statement For the Month Ended January 31 Revenue Service Revenue $ 50,000 A Expenses Salaries and Wages Expense Utilities Expense Depreciation Expense Advertising Expense Bad Debt Expense 27,000 9,500 918 480 210 $ Total Expenses Income before Income Tax Expense Income Tax Expense Net Income 38, 108 11,892 4,168 7,724 $ GRID IRON PREP INC. Trial Balance January 31, 2019 Account Title Credit Cash $ Debit 146,300 7,000 210 49,600 393 12,600 Accounts Receivable Allowance for Doubtful Accounts Buildings Accumulated DepreciationBuildings Equipment Accumulated Depreciation-Equipment Accounts Payable Income Tax Payable Deferred Revenue Common Stock Service Revenue Advertising Expense Bad Debt Expense Depreciation Expense Salaries and Wages Expense Utilities Expense Income Tax Expense Total 525 480 4,168 2,000 200,000 50,000 480 210 918 27,000 9,500 4,168 257,776 $ 257,776