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please solve the journal entries, income statement, statement of retained earnings, and balance sheet Grid Iron Prep Incorporated (GIPI) is a service business incorporated in
please solve the journal entries, income statement, statement of retained earnings, and balance sheet
Grid Iron Prep Incorporated (GIPI) is a service business incorporated in January of the current year to provide personal training for athletes aspiring to ploy college football. The following transactions occurred during the month ended January 31. a. GIPI issued stock in exchange for $180,000 cash on v01. b. GIPI purchased a gymnaslum bullding and gym equipment on 1/02 for $56,000,80% of which related to the gymnasium and 20% to the equipment c. GIPI paid $500 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $5,000 in training on 1/04 and expected collection in February. e. GIPI collected $44,000 cash in training fees on 1/10, of which $39,000 related to January and $5,000 related to February. f. GIPI paid $25,000 of wages and $8,500 in utilities on 1/30. 9. GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $6,000.6ym 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-twelith the yearly amount. h. GIPI recelved a bill on 1/31 for $120 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. 1. GIPI's income tax rate is 30\%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Grid Iron Prep Incorporated (GIPI) is a service business incorporated in January of the current year to provide personal training for athletes aspiring to ploy college football. The following transactions occurred during the month ended January 31. a. GIPI issued stock in exchange for $180,000 cash on v01. b. GIPI purchased a gymnaslum bullding and gym equipment on 1/02 for $56,000,80% of which related to the gymnasium and 20% to the equipment c. GIPI paid $500 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $5,000 in training on 1/04 and expected collection in February. e. GIPI collected $44,000 cash in training fees on 1/10, of which $39,000 related to January and $5,000 related to February. f. GIPI paid $25,000 of wages and $8,500 in utilities on 1/30. 9. GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $6,000.6ym 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-twelith the yearly amount. h. GIPI recelved a bill on 1/31 for $120 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. 1. GIPI's income tax rate is 30\%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes Step by Step Solution
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