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 $240,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $58,000,80% of which related to the gymnasium and 20% to the equipment. c. GIPI paid $600 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $4,000 in training on 1/04 and expected collection in February. e. GIPI collected $48,000 cash in training fees on 1/10, of which $42,000 related to January and $6,000 related to February. f. GIPI paid $27,000 of wages and $7,000 in utilities on 1/30. g. GIPI will depreciate the gymnaslum building using the straight-line method over 10 years with a residual value of $4,500, 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-tweifth the yearly amount. h. GIPI recelved a bill on 1/31 for $590 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. 1. GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Prepare journal entries to record the transactions and adjustments listed in (a) to (0). Review the accounts as shown in the General Ledger and Trial Balence tabs. (If no entry is required for a transaction/event, select "No Journal Entry Required" in the first account field. Aound your finat answers to thet nearest whole doliar amolant.) Use the dropdowns to select the appropriate accounts to be reported on the income statement. However, you will need to calculate and enter the amount of the Income before Income Tax Expense and net income or loss for the period. (Round your final answers to the nearest whole dollar amount:) Prepare the statement of retained earnings for the month ended January 31. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings, (Round your final answers to the nearest whole dollar amount, ) Use the dropdowns to select the appropriate accounts to be reported on the balance sheet. However, you will need to enter the amount for Accounts Recelvable (net of Allowance for Doubtful Accounts), Bulldings and Equipment (net of Accumulated Depreciation), Common Stock, and Retained Earnings. (Round your final answers to the nearest whole dollar amount.)
