Use the dropdowns to select the accounts properly included on the balance sheet. However, you will need to enter the amount of the Accounts receivable (net of Allowance for Doubtful Accounts), Buildings, Equipment (net of Accumulated Depreciation), Common stock and 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
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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.
a. GIPI issued stock in exchange for $100,000 cash on 1/01.
b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $50,000, 80% of which related to the gymnasium and 20% to
the equipment.
c. GIPI paid $260 cash on 1/03 to have the gym equipment refurbished before it could be used.
d. GIPI provided $4,000 in training on 1/04 and expected collection in February.
e. GIPI collected $36,000 cash in training fees on 1/10, of which $34,000 related to January and $2,000 related to February.
f. GIPI paid $23,000 of wages and $7,000 in utilities on 1/30.
g. 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 bill on 1/31 for $350 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.
Statement of
General
General
Income
Requirement
Trial Balance
Retained
Balance Sheet
Journal
Ledger
Statement
Earnings
Use the dropdowns to select the accounts properly included on the balance sheet. However, you will need to enter the amount
of the Accounts receivable (net of Allowance for Doubtful Accounts), Buildings, Equipment (net of Accumulated Depreciation),
Common stock and Retained earnings. (Round your final answers to the nearest whole dollar amount.)
GRID IRON PREP INC.
Balance Sheet
As of January 31
Assets
Transcribed Image Text: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. a. GIPI issued stock in exchange for $100,000 cash on 1/01. b. GIPI purchased a gymnasium building and gym equipment on 1/02 for $50,000, 80% of which related to the gymnasium and 20% to the equipment. c. GIPI paid $260 cash on 1/03 to have the gym equipment refurbished before it could be used. d. GIPI provided $4,000 in training on 1/04 and expected collection in February. e. GIPI collected $36,000 cash in training fees on 1/10, of which $34,000 related to January and $2,000 related to February. f. GIPI paid $23,000 of wages and $7,000 in utilities on 1/30. g. 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 bill on 1/31 for $350 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. Statement of General General Income Requirement Trial Balance Retained Balance Sheet Journal Ledger Statement Earnings Use the dropdowns to select the accounts properly included on the balance sheet. However, you will need to enter the amount of the Accounts receivable (net of Allowance for Doubtful Accounts), Buildings, Equipment (net of Accumulated Depreciation), Common stock and Retained earnings. (Round your final answers to the nearest whole dollar amount.) GRID IRON PREP INC. Balance Sheet As of January 31 Assets
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