QUESTION 3 Keruing Sejahtera Bhd (KERUING) is a company dealing with health food products operating in Bukit Kayu Hitam, Kedah. The partial statement of the financial position of KERUING as at 31 December 2020 is as follows: Current Liability RM 12% Notes payable 220,000 Interest payable 26,400 Premium liability 11,000 Accounts payable 180,000 437,400 Equity Share capital (1,500,000 ordinary shares) 3,300,000 Retained earnings 1.400,000 4,700,000 Following are transactions related to equity and current liabilities that took place during the first quarter of 2021: 1 January Declared a dividend of RM0.20 for each share outstanding on 31 December 2020. 1 January KERUING settled 12% notes payable together with the total interest that have not been paid in last year by signing a new RM400,000, 8%, 5-year long term loan. 31 January Purchased a machine for RM40,000, paying RM10,000 in cash and giving a one- year, 8% note for the balance. 21 February Received RM20,000 in advance for RM40,000 health product ordered by Secava Beauty Enterprise which to be delivered in March and April. 5 March Delivered health product ordered on 21 February, worth RM15,000. 18 March Cash sales of RM55,000. 28 March Purchased goods from Syarikat Kempas Bhd for an invoice price of RM60,000, terms 2/10, 1/30, FOB shipping point. KERUING paid freight costs of RM800. KERUING uses a periodic inventory system and the gross method of accounting for purchase discounts. 31 March Paid gross salaries of RM180,000 to employees. Deductions from the salaries are as follows: 1. Employees' contribution to EPF of 11% of the gross salary. 2. Zakat amounting to RM4.600. 3. Health insurance premium of RM8,400. 4. All payments to the respective departments are made on 25 April 2021. REQUIRED (6) Prepare the necessary adjusting entry(ies) at 31 March 2021