Answer Happy

The business has the following opening balances on March 1,
2022:
Stationery Supplies
$460
Gym Equipment
$23,429
Bank Loan (due December 2023)
$28,412
Accounts Payable
$9,799
Motor Vehicle
$38,291
Accounts Receivable
$16,435
Cash at Bank
$16,363
Capital
?
The business has the following opening
balances on March 1, 2022:
Stationery Supplies
$460
Gym Equipment
$23,429
Bank Loan (due December 2023)
$28,412
Accounts Payable
$9,799
Motor Vehicle
$38,291
Accounts Receivable
$16,435
Cash at Bank
$16,363
Capital
?
Transactions in the month of March
2022:
Date
Description
Amount ($)
March 1
Paid general insurance premium
2,608
March 2
Yoga Fees – Cash
3,928
March 3
Purchase stationary supplies – Cash
651
March 4
Paid rental of business premises
3,111
March 7
Payment to suppliers - on account
2,517
March 8
Gym Fees - Cash
3,018
March 9
Cash Withdrawals by Owner
1,011
March 10
Paid motor vehicle expenses
441
March 11
Receive payment from customers on
account
3,047
March 14
Membership Fees - Cash
4,888
March 15
Advertising Expense – on account
1,304
March 16
Yoga Fees – On account
2,787
March 17
Gym Fees – On account
2,075
March 21
Equipment hiring expenses – on
account
650
March 22
Advertising Expense – Cash
769
March 24
Sundry Expenses - Cash
333
March 28
Additional cash contributed by
owner
3,592
March 29
Equipment hiring expenses – Cash
354
March 31
Paid Staff Wages - Cash
5,572
Additional Information:
All revenues received are for the
month of March 2022.
(Tip: Use an appropriate name for each
of the T-account of revenue).
9. Whenever relevant, specify in the narration which month(s)
the expense is related to when record the transactions and balance
day adjustments. You can write using your preferred style.
For example:
Being payment of
rental expenses from Jan-April 2022 (4 months), or Being payment of
rental expenses for 4 months (Jan- April 2022)
10. Use 2 decimal points when relevant. Use a comma as separator
for figures more than 1,000, for example, 2,565, 1,296.
11. Closing balance for all revenue and expense accounts
Required
A. Prepare journal entries for all the
transactions in March 2022. Narrations are required.
B. Prepare journal entries for all
balance-day adjustments/ adjusting entries for the month of March
2022. You will need to refer to the additional information given.
Narrations and workings are required.
(Tip: You can show the workings as
part of your narrations.
For example: Being advertising
expenses for March 2022 (12,000x 2/12=$2,000))
C. Prepare the general ledger T-accounts
showing opening balance, transactions, balance-day adjustments, and
closing balance for the month of March 2022.
Also show the opening balance for the
next month for assets, liabilities and equities accounts.
(Tip 1: You do NOT
need to show for revenue and expenses accounts their opening
balances for the next month
Tip 2: Pre-number Give a number to
your T-accounts, commencing from 1 onwards. For example, if you
have created 25 T-accounts, you will have T-account no 1 to
25).
D. Prepare the Adjusted Trial Balance for
Happy Gym as at March 31, 2022 after including all transactions and
balance-day adjustments.
8. Refer to the following information for the balance-day adjustments: a) Closing stock of stationery supplies on 31/3 ($) b) Gym equipment scrap value ($) c) Gym equipment useful life (years) d) Rent paid for (months) e) Insurance paid for (months) f) Motor vehicle scrap value ($) g) Motor vehicle useful life (years) h) Bank loan interest rates (% per year) i) Tip: Use 360 days in a year for interest calculation. $719 $5,619 3 3 2 $5,049 3 10