Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Grid Iron Prep Incorporated (GIP) is a service business incorporated in January of the current year to provide personal training for athletes aspiring to pisy

image text in transcribed
Grid Iron Prep Incorporated (GIP) is a service business incorporated in January of the current year to provide personal training for athletes aspiring to pisy coliene footbali The following transactions occurred during the month ended January 31. a. GIPI issued stock in exchange for $120,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $52,000,80% 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 $6,000 in training on 104 and expected collection in February. e. GIPI collected $38,000 cash in training fees on 1/10, of which $35,000 related to January and $3,000 related to February. - Gipt pald $24,500 of wages and $6,000 in utitities on 1/30. 9. GiPI wil depreclate the gymnasium buliding using the straight-line method over 10 years with a residual value of $3,000. Gym equipment will be deprecioted using the double-declining-balance method, with an estimated residual value of $2,500 ot the end of its four-yeat useful life. Record depreciation on 1/31 equal to one-twelth the yearly amount. in Gipi receved a bill on 1/31 for $260 for odvertising done on 1/31. The bitt has not been pald or fecorded. 1. GIPI uses the aging method for estimating doubtful accounts and, on 1/31, will record an estimated 3 percent of its under30-day-old accounts as not collectible. 1. Gipl's income tax rate is 30\%. Assume depreciation for tax is the same amount as depreciation for financial reporting. purposes Prepare joumal entries to record the transactions and adjustments listed in (a) to (j), Review the accounts as shown in the Ledger and Trial Balance tabs. (If no entry is required for a transactionvevent, solect "No Joumal Entry. Required" in the first fleld: Round your final answers to the nearest whole dolfar amount.)

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

Step: 3

blur-text-image

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

Sarbanes Oxley Internal Controls Effective Auditing With AS5 CobiT And ITIL

Authors: Robert R. Moeller

1st Edition

0470170921, 978-0470170922

More Books

Students also viewed these Accounting questions

Question

7. Set team as well as individual performance goals.

Answered: 1 week ago

Question

4. How is culture a contested site?

Answered: 1 week ago