During the year ended 30 June 2025, the directors of Cooma Ltd paid a final dividend out of retained earnings of \($60\) 000, which had been recommended at the end of the previous financial year. They also declared and paid an interim dividend of \($150\) 000 on 1 February 2026. The balance of the Retained Earnings account at 1 July 2025 was \($200\) 000.

At 30 June 2026, the ledger accounts showed that the company had made a total profit of \($1\) 000 000 for the year. However, the directors determined that the following adjustments were still necessary to finalise the accounts.

1. Provide for an income tax liability of \($300\) 000.

2. Recommend the payment of a final dividend of \($100\) 000 out of retained earnings.

3. Transfer \($175\) 000 to a general reserve and \($100\) 000 to a plant replacement reserve.

Required

(a) Prepare journal entries to record all transactions above for the year ended 30 June 2026.

(b) Prepare the Retained Earnings account for the year ended 30 June 2026.