Please help! Just need these two questions
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. a. GIPI issued stock in exchange for $150,000 cash on 101. b. GIPI purchased a gymnasium building and gym equipment on 102 for $55,000, 80% of which related to the gymnasium and 20% to the equipment c. GIPI paid $200 cash on 103 to have the gym equipment refurbished before it could be used. d. GIPI provided $9,000 in training on 1/04 and expected collection in February e. GIPI collected $41,000 cash in training fees on 1/10, of which $39,000 related to January and $1,000 related to February 1. GIPI paid $28,500 of wages and $7,500 in utilities on 1/30. G. GIPI will depreciate the gymnasium 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 $4,000 at the end o its four-year useful life. Record depreciation on 1/31 equal to one-twelfth the yearly amount h. GIPI received a bill on 1/31 for $480 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. J. GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. General General Statement of Requirement Income Trial Balance Retained Journal Ledger Balance Sheet Statement Earnings Prepare journal entries to record the transactions and adjustments listed in (a)-6). Review the accounts as shown in the General Ledger and Trial Balance tabs. (If no entry is required for a transaction/event, select "No Journal Entry Required in the first account field. Round your final answers to the nearest whole dollar amount.) GIPI will depreciate the gymnasium 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 $4,000 at the end of its four-year useful life. Record Note: Enter debits before credits. Date Debit Credit Jan 31 General Journal Depreciation Expense Accumulated Depreciation-Buildings Accumulated Depreciation-Equipment Journal entry worksheet GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Record the transaction. Note: Enter debits before credits. Date Jan 31 Debit Credit General Journal Income Tax Expense Income Tax Payable Record entry Clear entry View general Journal
