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ome Fle Edit ViewHistory Bookmarks Peaple Window Help tpx Question 4 (of 4) ?+ E) Save & Exit Submit? 25.00 points C9-1 Accounting 3, 4-2,

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ome Fle Edit ViewHistory Bookmarks Peaple Window Help tpx Question 4 (of 4) ?+ E) Save & Exit Submit? 25.00 points C9-1 Accounting 3, 4-2, 8-2 9-2, 9-3] for Operating Activities (including Depreciation) and Preparing Financial Statements (Chapters 3, 4, 8, and 9) [L0 3. Grid Iron Prep Inc. (GIPl) is a service business incorporated in January of the current year to provide personal training for athletes aspiring to play college month ended January 31 I. The following transactions occurred during the 1. GIPI issued stock in exchange for $100,000 cash on 1/01. 2. GlPl purchased a gymnasium building and gym equipment on 102 for $50,000, 80% of which related to the gymnasium and 20% to the equipment. 3. GIPI paid $260 cash on 1/03 to have the gym equipment refurbished before it could be used. 4. GIPI provided $4,000 in training on 1/04 and expected collection in February 5. GIPI collected $36,000 cash in training fees on 1/10, of which $34,000 was eamed in January and $2,000 would be eaned in February 6. GIPI paid $23,000 of wages and $7,000 in utilities on 1/30. 7. GIPI will depreciate the gymnasium building using the straight-line method over 20 years with a residual value of $2,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $2,250 at the end of its four-year useful lie. Record depreciation on 1/31 equal to one-twelfth the yearly amount 8. GIPI received a bill on 1/31 for $350 for advertising done on 1/31. The bill has not been paid 9. GIPI uses the aging method for estimating doubtful accounts and, on 1/31, will record an estimated3 10.GPIs income tax rate is 30%. Assume depreciation for tax is the same amount as deprecation for or recorded percent of its under 30 day-old accounts as not collectible. financial reporting purposes

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