You have been appointed as the Financial Manager of Red Slippers Trading. Your bookkeeper  prepared the pre-adjustment trial balance and presented the following transactions to you: 1. Blue, a customer, passed away and his estate cannot settle his account of R5 000.  2. Equipment was purchased on 1 May 2021 for R48 000. The estimated residual value of the  equipment amounts to R15 000. The equipment is expected to be used for a period of 5  years and the company adopted the straight-line depreciation method in its accounting  policies. The purchase was correctly recorded on 1 May 2021. 3. Red Slippers Trading pays rental on an annual basis, instead of monthly. The annual rental  of R69 000 was paid on 1 April 2021. 4. The copier rental account, of R1 200, has not been received yet. 5. The bookkeeper posted the June 2021 Eskom billing of R4 400 to the stationery account in  error. 6. Yellow Co. ordered goods of R750 during December 2021 and settled the account  immediately. The goods have not been manufactured yet and will only be delivered in  January 2022. 7. The stock count conducted on 31 December 2021 confirmed that the consumable inventory  on hand is valued at R500. The pre-adjustment trial balance reported it to be R650. Required: -Record the transactions presented to you by the bookkeeper through general journals for  the financial year ended 31 December 2021 -Post the correction of the Eskom billing (transaction 5) to the General Ledger. The pre-adjustment trial balance detailed the stationery expense to be R15 200 and the electricity expenses R56 000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
100%

You have been appointed as the Financial Manager of Red Slippers Trading. Your bookkeeper 
prepared the pre-adjustment trial balance and presented the following transactions to you:
1. Blue, a customer, passed away and his estate cannot settle his account of R5 000. 
2. Equipment was purchased on 1 May 2021 for R48 000. The estimated residual value of the 
equipment amounts to R15 000. The equipment is expected to be used for a period of 5 
years and the company adopted the straight-line depreciation method in its accounting 
policies. The purchase was correctly recorded on 1 May 2021.
3. Red Slippers Trading pays rental on an annual basis, instead of monthly. The annual rental 
of R69 000 was paid on 1 April 2021.
4. The copier rental account, of R1 200, has not been received yet.
5. The bookkeeper posted the June 2021 Eskom billing of R4 400 to the stationery account in 
error.
6. Yellow Co. ordered goods of R750 during December 2021 and settled the account 
immediately. The goods have not been manufactured yet and will only be delivered in 
January 2022.
7. The stock count conducted on 31 December 2021 confirmed that the consumable inventory 
on hand is valued at R500. The pre-adjustment trial balance reported it to be R650.

Required:
-Record the transactions presented to you by the bookkeeper through general journals for 
the financial year ended 31 December 2021

-Post the correction of the Eskom billing (transaction 5) to the General Ledger. The pre-adjustment trial balance detailed the stationery expense to be R15 200 and the electricity expenses R56 000

Expert Solution
steps

Step by step

Solved in 2 steps with 2 images

Blurred answer
Knowledge Booster
Methods of accounting
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education