Grid Iron Prep Inc. (GIPI) is a service business incorporated in January of the current year to providepersonal training for athletes aspiring to play college football. The following transactions occurred during themonth ended January 31.1. GIPI issued stock in exchange for $100,000 cash on 1/012. GIPI purchased a gymnasium building and gym equipment on 1/02 for $50,000, 80% of which related tothe gymnasium and 20% to the equipment.3. GIPI paid $260 cash on 1/03 to have the gym equipment refurbished before it could be used4. GIPI provided $4,000 in training on 1/04 and expected collection in February5. GIPI collected $36 000 cash in training fees on 1/10, of which $34,000 was earned in January and$2,000 would be earned in February6. GIPI paid S23 000 of wages and $7,000 in utilities on 1/307. GIPI will depreciate the gymnasium building using the straight-line method over 20 years with a residualvalue of $2,000. Gym equipment will be depreciated using the double-declining-balance method, with anestimated residual value of $2 250 at the end of its four-year useful life. Record depreciation on 1/31equal to one-twelfth the yearly amount.8 GIPI received a bill on 1/31 for $350 for advertising done on 1/31 The bill has not been paidor recorded9 GIPI uses the aging method for estimating doubtful accounts and on 1/31. will record an estimated 3percent of its under 30 day-old accounts as not collectible.10.GIPI's income tax rate is 30% Assunme depreciation for tax is the same amount as depreciation forfinancial reporting purposes GRID IRON PREP INC.Balance SheetAs of January 31

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Asked Nov 4, 2019
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Prepare a 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.
1. GIPI issued stock in exchange for $100,000 cash on 1/01
2. 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.
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
$2,000 would be earned in February
6. GIPI paid S23 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 $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.
8 GIPI received a bill on 1/31 for $350 for advertising done on 1/31 The bill has not been paid
or recorded
9 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.
10.GIPI's income tax rate is 30% Assunme depreciation for tax is the same amount as depreciation for
financial reporting purposes
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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. 1. GIPI issued stock in exchange for $100,000 cash on 1/01 2. 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. 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 $2,000 would be earned in February 6. GIPI paid S23 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 $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. 8 GIPI received a bill on 1/31 for $350 for advertising done on 1/31 The bill has not been paid or recorded 9 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. 10.GIPI's income tax rate is 30% Assunme depreciation for tax is the same amount as depreciation for financial reporting purposes

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GRID IRON PREP INC.
Balance Sheet
As of January 31
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GRID IRON PREP INC. Balance Sheet As of January 31

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Expert Answer

Step 1

Balance sheet for Grid Iron Prep (GIP) Incorporation ...

GIP Inc.
Balance Sheet
For the Month of January
Amount (S)
Amount ($)
Assets
$55,740
Cash
$4,000
Accounts Receivable
Less: Allowance for doubtful debts
Gymnasium
Less: Accumulated Depreciation Gymnasium
$3.880
$120
$40,000
$158
$39,842
Gym Equipment
Less: Accumulated Depreciation - Gym Equipment
Total Assets
$10,260
$428
$9,832
$109.294
Liabilities and stockholders' equity
Accounts Payable
Unearned Training Revenue
Income Tax Payable
$350
$2,000
$2,083
$100,000
$4,861
$109,294
Common Stock
Retained Earnings (Net Income)
Total Liabilities and stockholders' equity
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GIP Inc. Balance Sheet For the Month of January Amount (S) Amount ($) Assets $55,740 Cash $4,000 Accounts Receivable Less: Allowance for doubtful debts Gymnasium Less: Accumulated Depreciation Gymnasium $3.880 $120 $40,000 $158 $39,842 Gym Equipment Less: Accumulated Depreciation - Gym Equipment Total Assets $10,260 $428 $9,832 $109.294 Liabilities and stockholders' equity Accounts Payable Unearned Training Revenue Income Tax Payable $350 $2,000 $2,083 $100,000 $4,861 $109,294 Common Stock Retained Earnings (Net Income) Total Liabilities and stockholders' equity

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