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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: 2.1 Record the transactions presented to you by the bookkeeper through general journals for the financial year ended 31 December 2021. 2.2 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.

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: 2.1 Record the transactions presented to you by the bookkeeper through general journals for the financial year ended 31 December 2021. 2.2 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.

Intermediate Accounting: Reporting And Analysis
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter11: Depreciation, Depletion, Impairment, And Disposal
Section: Chapter Questions
Problem 9P: During 2019, Ryel Companys controller asked you to prepare correcting journal entries for the...
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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: 2.1 Record the transactions presented to you by the bookkeeper through general journals for the financial year ended 31 December 2021. 2.2 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.
Transcribed Image Text: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: 2.1 Record the transactions presented to you by the bookkeeper through general journals for the financial year ended 31 December 2021. 2.2 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.
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