The directors of Murphy Ltd provide you with the following financial information for the period ended 31 December 2013: selling expenses $58 500; interest expense $22500;legal fees $3750, administrative expense$46 500; income tax expense $24 000; cost of sales $285 000; ordinary share capital (20 000 shares issued) $120 000; sales revenue $465000; other revenue $112 500; dividends declared (for current period) $12 000.Retained earnings at the beginning $174 000.
Required
(a) Prepare an income statement for Murphy Ltd for the period ended 31 December 2013.
(b) Determine the closing balance of retained earnings at 31 December 2013.