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this is one question!! Jan. 31 count 20 $12 240 004 Accounting for Operating Activities (including Depreciation) and Preparing Financial Statements (Chapters 3.4. 8. and
this is one question!!
Jan. 31 count 20 $12 240 004 Accounting for Operating Activities (including Depreciation) and Preparing Financial Statements (Chapters 3.4. 8. and 9) LO 33.4-2. 82. 92. 9.3 Grid Iron Prep Inc. (GIPI) is a service business incorporated in January of the current yeat to provide personal training for athletes aspiting to play college football. The following transactions occurred during the month ended Mary 31 2. GEPI issued stock in exchange for $100,000 cash on 1/01 5.GIPI purchased a gymnasium building and gym equipment on 102 for $50,000. 50 percent of stich tetted to the gymnasium and 20 percent to the equipment GIPI paid $260 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided 54.000 in training on 1/04 and expected collection in February . GIPI collected $36,000 cash in training fees on 1/10. of which $24.000 related to January and $2.000 related to February GIPI paid $23.000 of wages and 57.000 is utilities on 1/30 L. 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 life. Record depreciation on 1/31 equal to one twelfth the yearly amount h. GIPI received a bit on 1/31 for $350 for advertising done on 1/3. The bill has not beto paid or recorded GIPT uses the aping method for estimating doobefut accounts and on 131, will second an estimated) percent of its under 30-day-old accounts as not collectible GIPT's income tax rate is 30 percent. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes Required: 1. Prepare journal entries to record the transactions and adjustments listed in (a)-0% 2. If you are completing this problem niangaly pout the entries from requirement to Taccounts and the prepare an adjusted trial balance at December 31 Shower balance for Retained Earnings in the adrested trial balance. (If you are completing this problem in Connect, this requirement will be completed automatically for you using your responses to request) 3. Prepare GIPT's and income statement, statement of retained earnings and classified balance short Prepare journal entries to record the transactions and adjustments listed in a a. b. C. d . d. e. f. 9 h. i. Dance at December 31. Show atero balance for Retained Earnings in the adjusted trial balance Cash the prepare an adjusted trial Accounts Receivable Bal 0 Income Tax Expense Bal 0 Bal D Allowance for Doubtful Accounts 0 Bal Buildings Bal 0 Accumulated Dep.-Buildings 0 Bal Equipment Accounts Payable 0 Bal Bal Income Tax Payable 0 Bal Accumulated Dep.-Equipment 0 Bal Deferred Revenue 0 Ball Common Stock O Retained Earnings 0 Bal Bal Service Revenue) Salaries & Wages Expense 0 Bal Bal 0 Utilities Expense (El 0 Depreciation Expensee 0 Bal Bal Advertising Expense (6) 0 Bal Bad Debt Expense E 0 Bal 3. Prepare GIPI's annual income statement statement of retained earnings and classified balance sheet Step by Step Solution
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