You are the owner of Rent a Room Pty (Ltd) (from here on referred to as RR).

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Question:

You are the owner of Rent a Room Pty (Ltd) (from here on referred to as “RR”). RR owns various properties and has a 31 December year-end. RR makes use of the accrual

accounting method when compiling financial statements. The following transactions relating to the 2022 financial year have not been accounted for

yet:

Transaction 1. On 31 December 2022, RR’s total telephone expense for the year amounted to R22 000. This was excluding the Telkom bill for December 2022. On 15 January 2023, Telkom sent you the telephone bill for December 2022, which amounted to R7 500. You have not recorded this in your books, nor have you paid the bill, as you are disputing the amount

payable. By the end of January 2023, Telkom did not issue any credit notes despite your disputes, it is also considered unlikely that they will

issue a credit note in the future.

Transaction 2. Penny Peterson, a tenant of RR, fell behind on her rental of R5 000 per month. She however made a payment of R50 000 on 15 December 2022. At the time of making the payment, she owed RR the rent for November and December 2022. You contacted her to enquire about the amount paid and she informed you that she received a big bonus at work and wanted to settle her outstanding rent and that the balance of the amount paid is toward her future, i.e. 2023, monthly rental. You were happy and kept the money. You still need to account for the R50 000 in your books.

Transaction 3. Your buildings have prepaid electricity meters installed. You do not have time to load electricity to the meters every other day, you, therefore, buy prepaid electricity units in bulk from Eskom. On 1 December 2022, you bought 17 800 units of electricity @ R2.50 per unit. On 31 December you had 9 750 units left.

REQUIRED:

2.3 Prepare the general journal entries to account for transactions 1 – 3 of Rent a Room Pty (Ltd) for the financial year ended 31 December 2022. Dates and narrations are not required.