The following balances remained on the Trial Balance of Alvin Preston, a wholesaler, AFTER the preparation of the Trading Account on December 31, 2007: Gross profit Accumulated depreciation on motor vehicles Capital (January 1, 2007) Creditors Cash at bank Debtors Drawings Office expenses Provision for bad debts Rates Closing inventory (Stock) Motor vehicles at cost Additional notes: 2 3. 4. 5. 6. Debit $ 100 8350 $500 6300 750 3 000 12 500 36 500 Credit S 19 500 7 500 4200 5000 300 36 500 Debtors included a certain bad debt of $250. The Provision for bad debts is to be increased to $400. No entry had been made in the books of account for a cheque received from a debtor on December 31, 2007 made payable to Preston for $200. At December 31, 2007 Preston owed $150 for Insurance. Rates prepaid at December 31, 2007 amounted to $50. Preston uses the reducing balance method of depreciation on motor vehicles at a rate of 30% per annum. There were no purchases or sales of motor vehicles during the year. Prepare Alvin Preston's Profit and Loss Account for the year ended December 31, 2007. (8 marks) Prepare Alvin Preston's classified Balance Sheet in vertical style, as at December 31, 2007. (12 marks)​