Grid Iron Prep Incorporated (GIPI) is a service business incorporated in January of the current year to provide personal training forathletes aspiring to play college football. The following transactions occurred during the month ended January 31.a. GIPI issued stock in exchange for $180,000 cash on 1/01.b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $55,000, 80% of which related to the gymnasium and20% 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.g. GIPI will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $6,000. Gymequipment will be depreciated using the double-declining-balance method, with an estimated residual value of $2,500 at theend 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 $120 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.GeneralRequirementJournalGeneralLedgerTrial BalanceIncomeStatementStatement ofRetainedEarningsBalance SheetPrepare the statement of retained earnings for the month ended January 31. You will need to determine and enter theaccounts and balances to prepare the Statement of Retained Earnings. (Round your final answers to the nearest whole dollaramount.)GRID IRON PREP INCORPORATEDStatement of Retained EarningsFor the Month Ended January 31Balance, January 1Net IncomeDividendsBalance, January 31Income StatementBalance Sheet >

A service-based entity earns from rendering services which can be either in cash or on account.…

Prepare the statement of retained earnings for the month ended January 31. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. (Round your final answers to the nearest whole dollar amount.)

Prepare the statement of retained earnings for the month ended January 31. You will need to determine and enter the accounts and balances to prepare the Statement of Retained Earnings. (Round your final answers to the nearest whole dollar amount.)

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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