Question

Fitness Training March 2019 Transactions Description of the Transaction Date 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 5450 for interest oxyed 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 3

Answer 1

Prepare journal entries as follows:

Date	Account Titles	Debit	Credit
Mar. 01	Cash	$55,000
	Owners' capital		$55,000
Mar. 01	Note payable	$60,000
	Interest payable	$450
	Cash		$60,450
Mar. 01	Rent Expense	$7,200
	Cash		$7,200
Mar. 02	Accounts payable	$88,000
	Cash		$88,000
Mar. 10	Cash	$69,000
	Training Revenue		$69,000
Mar. 15	Wages Expense	$34,000
	Cash		$34,000
Mar. 16	Gym Supplies	$7,000
	Accounts payable		$7,000
Mar. 17	Accounts receivable	$133,000
	Training Revenue		$133,000
Mar. 20	Accounts receivable	$57,000
	Cash	$25,000
	Training Revenue		$82,000
Mar. 22	Gym Supplies	$3,750
	Cash		$3,750
Mar. 26	Accounts payable [$7000 * 50%]	$3,500
	Cash		$3,500
Mar. 30	Wages Expense	$31,250
	Cash		$31,250

Provide opening balance for ledger posting: