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Accounting for a Fitness Solutions Company

Discuss how the following transactions would fit into the accounting equation.

Fitness Solutions sold 1,250 of its $600 annual memberships to its fitness centers in 2006.
Fitness Solutions earned $400,000 in revenues from providing the services of a personal trainer.
Fitness Solutions reported $850,000 in sales from selling fitness equipment.
Fitness Solutions purchased fitness equipment on account costing $500,000 that it plans to resell.
Fitness Solutions paid $2,500 for towel-laundering services for 2006.
Fitness Solutions paid its CEO $250,000 for 2006.
Fitness Solutions paid $1,500 for an advertisement campaign to sell new memberships.
Fitness Solutions reported $300,000 in Cost of Goods Sold for 2006.
Fitness Solutions paid $100,000 in sales salaries for 2006.
Fitness Solutions paid $1,500 in equipment repairs for 2006.

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Discuss how the following transactions would fit into the accounting equation.

Fitness Solutions sold 1,250 of its $600 annual memberships to its fitness centers in 2006.

Assets: Increase
Equity: Increase

Fitness Solutions earned $400,000 in revenues from providing the services of a personal trainer.

Assets: Increase
Equity: Increase
As there is increase in cash income

Fitness Solutions reported $850,000 in ...

Solution Summary

Response provides helps in accounting for a Fitness Solutions Company

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