Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I just need help with the ones missing and the ones that are blank! Grid Iron Prep Inc. (GIPI) is a service business incorporated in
I just need help with the ones missing and the ones that are blank!
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.
- GIPI issued stock in exchange for $300,000 cash on 1/01.
- 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.
- GIPI paid $200 cash on 1/03 to have the gym equipment refurbished before it could be used.
- GIPI provided $10,000 in training on 1/04 and expected collection in February.
- GIPI collected $40,000 cash in training fees on 1/10, of which $35,000 related to January and $5,000 related to February.
- GIPI paid $25,000 of wages and $8,500 in utilities on 1/30.
- GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $4,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,000 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount.
- GIPI received a bill on 1/31 for $740 for advertising done on 1/31. The bill has not been paid or recorded.
- 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.
- GIPIs income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes.
2 Jan 02 Buildings Equipment Cash 41,600 10,400 52,000 Jan 03 Equipment 200 Cash 200 Jan 04 10,000 Accounts Receivable Deferred Revenue 10,000 Jan 10 40,000 Cash Service Revenue Deferred Revenue 35,000 5,000 Jan 30 Salaries and Wages Expense Utilities Expense Cash 25,000 8,500 33,500 Jan 31 755 Depreciation Expense Accumulated Depreciation Buildings 755 X Jan 31 740 Advertising Expense Accounts Payable 740 Jan 31 300 Bad Debt Expense Allowance for Doubtful Accounts 300 Choose the appropriate accounts to be reported on the income statement. Hov amount of the Income before Income Tax Expense and net income or loss for t nearest whole dollar amount.) GRID IRON PREP INC. Income Statement For the Month Ended January 31 Revenue Salaries and Wages Expense $ Utilities Expense Expenses Depreciation Expense Advertising Expense Bad Debt Expense 25,000 8,500 755 740 300 $ Income before Income Tax Expense 0 1,795 (2,912) 0 6,794 (2,912 Net Income $ Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet Prepare the statement of retained earnings for the month ended January 31. You will need to deterr accounts and balances to prepare the Statement of Retained Earnings. (Round your final answers to amount.) GRID IRON PREP, INC Statement of Retained Earnings For the Month Ended January 31 Balance, January 1 Net Income Add: Dividends Balance, January 31 6,794 Use the dropdowns to select the accounts properly included on the balance sheet. However, you will need to enter t Common stock and Retained earnings. (Round your final answers to the nearest whole dollar amount.) GRID IRON PREP INC. Balance Sheet As of January 31 Assets Current Assets Cash Accounts Receivable Total Current Assets - 254,300 10,000 X 264,300 $ 264,300 0 0 0 0 0 $
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started