# 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

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

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