Shahnaz opened a boutique, Alima Boutique outlet on 1 January 2021 located in Damansara Utama. The outlet sells exclusive types of veils and 'jubah'. The following is the trial balance of Alima Boutique: Alima Boutique Trial Balance as at 31 December 2021 Debit (RM) Capital Freehold land and buildings Fixtures and fittings Motor van Credit (RM) 230,000 125,200 85,000 75,000 Purchases 300,600 Sales 450,000 Sales return 5,500 Salaries 65,400 Utility expenses 4,500 Telephone expenses 3,500 Advertising and promotion 7,000 Carriage inwards 5,200 Carriage outwards 5,500 Commission received 1,900 Accounts receivable 122,000 Accounts payable 95,000 Loan from IID Bank 110,000 15,000 Cash in hand 65,000 Cash at bank 2,500 Drawings 886 900 886 900 Drawings 2,500 886,900 886,900 The following matters are to be taken into account: 1. No record was made by Shahnaz on cash withdrawals amounting to RM500 for personal use. 2. Annual depreciation for freehold land and buildings, fixtures and fittings are RM12,520 and RM17,000 respectively. The annual depreciation for motor van is RM15,000. 3. Alima Boutique issued a debit note amounting of RM2,300 to a supplier. No record has been made in the business book of accounts. 4. Utility expenses were paid in advance at the amount of RM250. 5. The salaries for the month of November and December 2021 amounting to RM10,500 was paid in January 2022. 6. The business has received RM900 of commission in advanced. 7. Inventory at the end of the year was valued at RM85,570. Required: i. Prepare the Statement of Profit or Loss and the Statement of Financial Position as at 31 December 2021. (22 marks) ii. Under the accrual basis accounting, adjustments for accruals and prepayments need to be considered. Explain the term accrued expenses