Question
The following transactions occured during the year ended December 31, 2013. a. GIPI issued a stock in exchange for $280,000 cash. b. GIPI purchased a
The following transactions occured during the year ended December 31, 2013.
a. GIPI issued a stock in exchange for $280,000 cash.
b. GIPI purchased a gymnasium building and gym equipment at the beginning of the year for $54,000, 80% of which related to the gymnasium and 20% to the equipment.
c. GIPI paid $500 cash to have the gym equipment refurbished before it could be used.
d. GIPI colleged $40,000 cash in training fees during the year, of which $5,000 were customer deposits to be earned in 2014.
e.GIPI paid $25,000 of wages and $6,500 in utilities.
f. GIPI provided $8000 in training during the final month of the year and expected collection in 2014.
g. GIPI will depeciate the gymnasium building using the straight-line method over 10 years with a residual value of $2,000. Gym equipment will be depreciated using the double-declining method, with an estimated residual value of $4,500 at the end of its four-year usful ife.
h. GIPI received a bill for $390 of advertisting done during december. The bill has not been paid or recorded.
i. GIPI will record an estimated 3% of its accounts recieveable as not collectable..
j. GIPI's income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes.
I need help finding $$ amounts on these journal entries:
g. Depreciation expense
Accumulated depreciation-equipment
accumulated depreciation-building
j. income tax expense
income tax payable.
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