QUESTION 1 A. Zobas Enterprise is a merchandising company with financial year ended 31 December every year. You as an accountant of the company identified that the following transactions in year 2020 have not been recorded: i). On 28 August 2020, Zobas Enterprise paid $8,400 rental expenses for a period of one-year, from 1 September 2020 to 31 August 2021. ii). On 1 October 2020, Zobas Enterprise purchased new vehicle by cash amounting to $115,450 at cost. The vehicle has 10-year useful life and $250 residual value. Both, the cost of vehicle and depreciation expense for this vehicle have not been recorded by the company. Prepare the initial journal entry for the date of transactions and the adjusting entry for 31st December 2020. (17 marks) B. The following errors had been identified. If no corrections were being made, how much is the impact of each of the errors to net income (i.e. overstated or understated)? Show your calculation and justify your answer. Each transaction should be answered individually and not related to each other. i). Inventory purchased by cash amounting to $5,300 had been omitted from the company's accounting record. ii). An equipment was purchased on 1 June 2020 by cash, amounting to $6,000 at cost, with no residual value and three (3) years useful life, had been omitted from the company's accounting record. Assuming the company financial year ended 31 December 2020. 1 iii). Salary expense amounting to $16,800 had been wrongly entered as $18,600. iv). Payment to supplier amounting to $2,000 had been wrongly entered as $200. (18 marks) (TOTAL: 30 MARKS)