During the year ended 30 June 2019, the directors of Jindabyne Ltd declared and paid an interim dividend of $18 000 out of retained earnings. At the end of the year the financial statements showed a profit (before tax) of $460 000 out of which the directors made the following reserve transfers and tax liability.

The beginning balance of retained earnings was $15 000.

Required

(a) Prepare journal entries relating to the above transactions.

(b) Prepare the Retained Earnings account for Jindabyne Ltd for the year ended 30 June 2019.

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Income tax expense Reserves: Plant replacement General $140 000 40 000 102000