The last badge is off the coast of cinnabar it is the red dot in the left corner of the map
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After you beat the gym, you must leave, heal ur pokemon, then go back and talk to the leader and she should give you the badge
You can't get the badge to the fighting gym. You can however, fight the dojo master. He is in Mt. Mortar. When you beat him, he will give you a Tyrogue.
The 7th badge is in mahogany town.
The Karate King can be found in Mt.Mortar in Pokemon Gold. You will need the HM moves Surf and Waterfall to reach the part of the cave where the Karate King is training.
In Pokemon Gold, Silver, Crystal, Heartgold, and Soulsilver the Karate King is in Mt. Mortar, East of Ekruteak City. He will have a Hitmonlee and Hitmonchan, and give a Tyrogue upon defeat if you accept it and have a space empty.