The following trial balance was extracted from the ledgers of AV Trading Company Limited on 31 December 2007. 10% debenture 2015 (issued in 2005) Bank Bank fixed deposits Bank interest income Bank overdraft interests Cash General reserve Inventory, at 1 January 2007 Management fees (paid) Ordinary share capital ($5 per share) Plant and machinery - cost Plant and machinery - accumulated depreciation, at 1 January 2007 Property - cost Property - accumulated depreciation, at 1 January 2007 Purchases Purchases returns Retained profit, at 1 January 2007 Salaries (paid) Sales Sales returns Share premium Trade payables Trade receivables Allowance for doubtful debt Debit $ 150,000 1,000 5,000 180,000 25,000 100,000 800,000 1,690,000 280,000 120,000 260,000 3,611,000 Credit S 200,000 120,000 2,000 40,000 50,000 36,000 80,000 55,000 115,000 2,553,000 150,000 190,000 20,000 3.611,000 Additional information: Carrying amount of the closing inventory at 31 December 2007 was $480,000. The allowance for doubtful debt was increased to $30,000 at 31 December 2007. Depreciation for the year is to be provided as follows: Plant and equipment Property (1) (2) (3) (5) 20% per annum on reducing balance 5% per annum on cost At 31 December 2007, management fees paid in advance amounted to $5,000 and salaries due amounted to $25,000. The income tax for the year is estimated to be $150,000. (6) (7) REQUIRED: (a) (b) The directors proposed to pay a final dividend of $5 per share and to transfer $40,000 from retained profit to general reserve. There was no share issued during the year ended 31 December 2007. (c) Prepare the statement of comprehensive income of the company for the year ended 31 December 2007. (7 marks) Prepare the statement of financial position of the company as at 31 December 2007. Show your workings. (14 marks) Briefly explain the following accounting concepts: accrual basis of accounting; and consistency of presentation. (i) (ii) (4 marke)