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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 GIPl issued stock in exchange for $200,000 cash on 1/01 b. GiPi purchased a gymnasium bullding and gym equipment on 1/02 for $62,000,80% of which felated 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. GiPl provided $7,000 in training on 104 and expected collection in February. e. GIPI collected $45,000 cash in traming fees on 1/10, of which $43,000 related to January and $2.000 related to February. t GIPl paid $27,000 of wages and $9,500 in utilities on 1/30 9. GIPI will depreciate the gymnasium bullding using the straight-ine method over 10 years with a residual value of $2,500.6ym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end of its four-year useful ilfe. Record depreciation on 1/31 equal to one-tweitth the yearly amount. h. GIPI recelved a bill on 1/31 for $480 for advertising done on 1/31. The bill has not been paid or recorded 1. GIPl 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 Journal tab. Prepare journal entries to record the transactions and adjustments listed in (a) to (j). Review the scoounts as shown in the Genetal Ledger and Trial Balance tabs. General Ledger tab - Each journal entry is posted automatically to the general ledger. Trial Balance tab - You may viow the adjusted trial balance. Income Statement tab - Prepare the income statement for the month ended January 31. Statement of Retained Earnings tab - prepare the statement of retained earnings for the month ended January 31 : Balance Sheet tab - Prepare the balance sheet as of panuary 31 . a. GIPI issued stock in exchange for $200,000 cash on 1/01. b. GIPl purchased a gymnasium building and gym equipment on 1,02 for $62,000,80% of which related to the gymnaslum and 20% to the equipment c. GPI paid $200 cash on 1103 to have the gym equipment refurbished before it could be used. d. GIPI provided $7,000 in training on 1104 and expected collection in February. e. GIPI collected $45,000 cash in training fees on 1/10, of which $43.000 related to January and $2,000 related to February. f GIPI paid $27,000 of wages and $9,500 in vtilties on 1/30 9. GIPI will depreciate the gymnasium bullding using the straight-line method over 10 years with a residual value of $2,500,6ym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $3,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelth the yearly amount. h. GIPi recelved a bill on 1/31 for $480 for advertising done on 1/31 The bill has not been paid or recorded G. GIP 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. GIPIs income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes. Prepare Joumal entries to record the transactions and adjustments listed in (a) to (j). Review the accounts as shown in the General Ledger and Tial 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.) Journal entry worksheet GtPI issued stock In exchange tor $200,000 cash on 1/01. Fecord the transaction. Wote: tater delats belore credins. 1e option you choose will be the values used to populate the income statement and balance sheet tabs. 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 amounti) Prepare the statement of retained eamings for the month ended January 31 . You will need to determine and enter the accounts and balances to prepare the Statement of Retalned 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.)
