Question: please answer all queztions Grid Iron Prep incorporated (GIP) is a service business incorporated in January of the current year to provide personal training for
Grid Iron Prep incorporated (GIP) is a service business incorporated in January of the current year to provide personal training for athiotes aspiring to play college football. The following transactions occurred during the month ended January 31. a. GIP1 issued stock in exchange for $180,000 cash on 101 . b. GIPI purchased a gymnaslum buliding and gym equipment on 102 for $56,000,80% of which related to the gymnaslum and 20% to the equipment. c. GIPI paid $500 cash on 103 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 V10, of which $39,000 related to January and $5,000 related to February. C GIPI paid $25,000 of wages and $8,500 in utilities on 1/30. g. GipI will depreciate the gymnaslum building using the straight-line method over 10 years with a residual value of $6,000. Gym equipment will be depreciated using the double-declining-balance method, with an estimated residual value of $2,500 at the end of its four-year useful life. Record depreciation on 1/31 equal to one-twelth the yearly amount. h. GIPI recelved a bill on 1/31 for $120 for advertising done on 1/31. The bill has not been paid or recorded. L. 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. 1. GIPI's income tax rate is 30\%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposes
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
