Course NUT4553101M Xe The Following Transactic xYnCh9Hw The

Course: NUT4553-101-M X?e The Following Transactic xYnCh9Hw The Following Transactic ? ? ? O ezto.mheducation.com/hm.tpx 25.00 points C9-1 Accounting for Operating Activities (Including Depreciation) and Preparing Financial Statements (Chapters 3, 4, 8, and 9) [LO 3-3, 4-2, 8-2 9-2, 9-3] Grid Iron Prep Inc. (GIPI) is a service business incorporated in January of the current year to provide personal training for athletes aspiing to play college football. The following transactions occurred during the month ended January 31 1. GIPI issued stock in exchange for $100,000 cash on 1/01 2 GPI purchased a gymnasium building and gym equipment on 1102 for S50.000, 80% of which related to the gymnasium and 20% to the equipment. 3. GIPI paid $260 cash on 1/03 to have the gym equipment refurbished before it could be used 4. GIPI provided $4,000 in training on 1/04 and expected collection in February 5. GIPI collected $36,000 cash in training fees on 1/10, of which $34,000 was earned in January and S2,000 would be eamed in February 6. GIPI paid $23,000 of wages and $7,000 in utilities on 1/30 7. GIPI will depreciate the gymnasium building using the straight-line method over 20 years with a residual value of 52,000. 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 lfe. Record depreciation on 1/31 equal to one-twelfth the yearly amount. 8. GIPI received a bill on 131 for $350 for advertising done on 131. The bill has not been paid 9. GIPl uses the aging method for estimating doubtful accounts and, on 1/31, will record an estimated 3 10 GIPl\'s income tax rate is 30% Assume depreciation for tax is the same amount as depreciation for or recorded percent of its under 30 day-old accounts as not collectible financial reporting purposes Statement of General Ledger Income Requirement General Trial Balance Statement Retained Balance Sheet Earnings Prepare journal entries to record the transactions and adjustments listed in (1)-(10). Review the accounts as shown in the General Ledger and Trial Balance tabs. Round your answers to nearest whole dollar. (If no entry is required for a transaction/event, select \"No journal entry required\" in the first account field.) iew transaction list O Type here to search 5:04 PM 7/9/2018

Solution

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Journal Entry
Date	Accounts and Explanation	Debit	Credit
01/01/2001	Cash	$100,000
	Common Stock		$100,000
	(To record issue of common stock)
02/01/2001	Gym Building	$40,000
	Gym Equipment	$10,000
	Cash		$50,000
	(To record purchase of gym and gym equipment)
03/01/2001	Gym Equipment	$260
	Cash		$260
	(To capitalize the expense of reburbishment to gym equipment)
04/01/2001	Accounts Receivable	$4,000
	Training Revenue		$4,000
	(To record revenue earned on training srevices provided)
10/01/2001	Cash	$36,000
	Training Revenue		$34,000
	Unearned training revenue		$2,000
	(To record receipt of earned and unearned training revenue)
30/01/2001	Wages Expense	$23,000
	Utilities Expense	$7,000
	Cash		$30,000
	(To record payment made towards wages and utilities)
31/01/2001	Depreciation Expense	$586
	Accumulated Depreciation - Gym Equipment*		$428
	Accumulated Depreciation - Gymnasium		$158
	(To record depreciation on gym equipment and gymnasium)
	*[($10,000 + $260) x 50%] / 12
31/01/2001	Advertising Expense	$350
	Accounts Payable		$350
	(To record advertisement expense insurred)
31/01/2001	Bad Debt Expense	$120
	Allowance for doubtful debts		$120
	(To record allowance for doubtful debts)
31/01/2001	Income Tax Expense	$2,083
	Income Tax Payable		$2,083
	(To record income tax expense)