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prepare income statement, statement of retained earnings, and balance sheet

Grid hon Prep incorporated (GIPI) is a service business incorporated in Janusary of the current year to provide personal training for athletes aspiting to play college football. The following transactions occurred during the month ended January 31. a. GIPl issued stock in exchange for $230.000 cash on 1/01. b. GIPI purchased a gymnasium bulding and gym equipment on 1/02 for $59,000,80% of which related to the gymesium 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 $10,000 in training on 1/04 and expected collection in February. e. GIPi collected $43,000 cash in training fees on 110, of which $38,000 related to January and $5,000 related to February t. GP1 paid $28.000 of wages and $8.000 in utilites on 1/30 g GIPl will depreciate the gymnasium building using the straight-line method over 10 years with a residual value of $4,000. Gym equipment will be deptectated using the double-declining-batance method, with an estimated residual value of $2,000 at the end of its four-year useful life. Recoid depreciation on 1/31 equal to one-tweith the yearly amount. h. GIPI received a bill on 1/31 for $630 for advertising done on 1/31. The bill has not been paid or recorded: 6. GiPl 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. f. GiPis income tax rate is 30%. Assume depreciation for tax is the same amount as depreciation for financial reporting purposef. GRID IRON PREP INCORPORATED Income Statement For the Month Ended January 31 \begin{tabular}{|l|} \hline GRID IRON PREP INCORPORATED \\ Statement of Retained Earnings \\ For the Month Ended January 31 \\ \hline Balance, January 1 \\ \hline \end{tabular}

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