Question

Requirement General Journal General Ledger Trial Balance Income Statement Statement of Retained Earnings Balance Sheet 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. Prepare journal entries to record the transactions and adjustments listed in (a)-(j). 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.) View transaction list Journal entry worksheet a. GIPI issued stock in exchange for $220,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $60,000, 80% of which related to the gymnasium and 20% to the equipment. C. GIPI paid $400 cash on 1/03 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 $39,000 cash in training fees on 1/10, of which $35,000 related to January and $4,000 related to February. f. GIPI paid $21,000 of wages and $10,500 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 $3,500. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $4,500 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 bill on 1/31 for $580 for advertising done on 1/31. The bill has not been paid or recorded. i. 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. 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. Record the transaction. Note: Enter debits before credits.

Answer 1

Trans	Date	Accounts Title	Dr	Cr
A)	1-Jan	caSH	$220,000
		Common stock		$220,000
b)	2-Jan	Building (60000*80%)	$48,000
		Equipment	12000
		Cash		60000
c)	3-Jan	Equipment	$400
		Cash		$400
d)	4-Jan	Accounts Receivable	$9,000
		Service Revenue		$9,000
e)	10-Jan	Cash	39000
		Service Revenue		35000
		Unearned Revenue		4000
f)	30-Jan	Salaries & wages Expenses	$21,000
		Utilities expenses	10500
		Cash		$31,500
					if not rounded off
g)	31-Jan	Depreciation expenses	888		887.5
		Accumulated Depreciation-Building (48000-3500)/10*1/12		371	370.83
		Accumulated Depreciation-Equipment (12400*50%*1/2)		517	516.67
		DDB rate 1/4*200%=50%
h)	31-Jan	Advertising expenses	$580
		Accounts payable		$580
i)		Bad debt expenses	$270
		Allowance for doubtful debts (9000*3%)		$270
j)	31-Jan	Income tax expenses	$3,229		$3,228.75
		Income tax payable		$3,229
		(9000+35000-31500-888-580-270)*30%
If any doubt please comment