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:

1. The business was purchased on February 28, 2022.
2. Show three types of revenue:
   1. Gym Fees
   2. Yoga Fees
   3. Membership fees

All revenues received are for the month of March 2022.

(Tip: Use an appropriate name for each of the T-account of revenue).

3. Use one Accounts Receivable account for all customers and one Accounts Payable account for all suppliers.
4. Unless otherwise indicated, all transactions are on a cash basis. (Tip: Use Cash at Bank account).
5. Rental and insurance period start on March 1.
6. Rental expenses and stationery supplies are initially recognized as an asset (Asset Approach).
7. Insurance expense is initially recognized as an expense (Expense Approach).

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

• Show the ending balance for all revenue and expense accounts as Closing balance in the General Ledger T-account. No closing entries to income statement is required.
• You are NOT required to show the opening balance of the next month 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