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Grid Iron Prep Incorporated ( GIPI ) is a service business incorporated in January of the current year to provide personal training for athletes aspiring
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
a GIPI issued stock in exchange for $ cash on
b GIPI purchased a gymnasium building and gym equipment on for $ of which related to the gymnasium and to
the equipment.
c GIPI paid $ cash on to have the gym equipment refurbished before it could be used.
d GIPI provided $ in training on and expected collection in February.
e GIPI collected $ cash in training fees on of which $ related to January and $ related to February.
f GIPI paid $ of wages and $ in utilities on
g GIPI will depreciate the gymasium building using the straightline method over years with a residual value of $ Gym
equipment will be depreciated using the doubledecliningbalance method, with an estimated residual value of $ at the end of
its fouryear useful life. Record depreciation on equal to onetwelfth the yearly amount.
h GIPI received a bill on for $ for advertising done on The bill has not been paid or recorded.
i GIPI uses the aging method for estimating doubtful accounts and, on will record an estimated percent of its underdayold
accounts as not collectible.
j GIPI's income tax rate is Assume depreciation for tax is the same amount as depreciation for financial reporting purposes.
General Journal tab Prepare journal entries to record the transactions and adjustments listed in a to j Review
the accounts as shown in the General Ledger and Trial Balance tabs
General Ledger tab Each journal entry is posted automatically to the general ledger.
Trial Balance tab You may view the adjusted trial balance.
Income Statement tab Prepare the income statement for the month ended January
Statement of Retained Earnings tab Prepare the statement of retained earnings for the month ended January
Balance Sheet tab Prepare the balance sheet as of January
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