Question

Fitness Training
March 2019 Transactions
	Date	Description of the Transaction
	Mar 1	The owners of Fitness Training invested an additional $55,000 cash in the business.
	Mar 1	Pay off $60,000 of the Note Payable. Also pay $450 for interest owed on the Note Payable for February.
	Mar 1	Take $7,200 cash out of bank to pay for March's rent.
	Mar 2	A customer that purchased on credit in February pays $88,000 cash to pay off the amount due.
	Mar 10	Sell training sessions to a customer for $69,000. The customer pays cash.
	Mar 15	Take $34,000 cash out of the bank to pay employees for wages they have earned.
	Mar 16	Purchase $7,000 of additional supplies. Fitness will pay 50% of the $7,000 in 10 days. Fitness will pay the remaining 50% in 30 days.
	Mar 17	Sell training sessions to a customer for $133,000. The customer will pay in 30 days.
	Mar 20	Sell training sessions to a customer for $82,000. The customer pays $25,000 cash. The customer will pay the remaining amount in 30 days.
	Mar 22	Purchase supplies for $3,750 cash.
	Mar 26	Pay the 50% due on the March 16th purchase of supplies.
	Mar 30	Take $31,250 cash ou of Little Bank to pay employees for wages they have earned.
		Additional Information
		Interest due on the Note Payable for the month of March is $575. As of March 31 Fitness owes the bank a total of $1,175 for interest ($600 for February & $575 for March). Interest will be paid in June.

Answer 1

Journal Entries
Date	Account Titles and Explanation	Debit	Credit
Mar. 1	Cash	$55,000
	Common Stock		$55,000
	(To record the cash invested into the business)
Mar. 1	Nots Payable	$60,000
	Interest Expense	$450
	Cash ($60,000 + $450)		$60,450
	(To record the payment of notes payable with interest)
Mar. 1	Rent Expense	$7,200
	Cash		$7,200
	(To record the payment of rent)
Mar. 2	Cash	$88,000
	Accounts Receivable		$88,000
	(To record the collection of accounts receivable)
Mar. 10	Cash	$69,000
	Service Revenue		$69,000
	(To record the training services provided for cash)
Mar. 15	Salaries and Wages Expense	$34,000
	Cash		$34,000
	(To record the payment of salaries and wages expense)
Mar. 16	Supplies	$7,000
	Cash ($7,000*50/100)		$3,500
	Accounts Payable ($7,000 - $3,500)		$3,500
	(To record the purchase of supplies by cash and on account)
Mar. 17	Accounts Receivable	$133,000
	Service Revenue		$133,000
	(To record the training services provided on account)
Mar. 20	Cash	$25,000
	Accounts Receivable ($82,000 - $25,000)	$57,000
	Service Revenue		$82,000
	(To record the services provided for cash and on account)
Mar. 22	Supplies	$3,750
	Cash		$3,750
	(To record the purchase of supplies by cash)
Mar. 26	Accounts Payable	$3,500
	Cash		$3,500
	(To record the payment of accounts payable)
Mar. 30	Salaries and Wages Expense	$31,250
	Cash		$31,250
	(To record the payment of salaries and wages expense)
Adjusting Entries
Date	Account Titles and Explanation	Debit	Credit
Mar. 31	Interst Expense	$575
	Interest Payable		$575
	(To record the accrual of interest expense on the note payable)
Mar. 31	Interst Expense ($600 + $575)	$1,175
	Interest Payable		$1,175
	(To record the interest expense owed to bank)