Homes Company reported the following data at the end of its first year of operations on December 31.

Cash $ 14,000

Accounts receivable 15,000

Equipment 17,000

Land 58,000

Accounts payable 11,000

Common stock 55,000

Dividends 30,000

Net income 68,000

a) Prepare its year-end statement of retained earnings.

(b) Prepare its year-end balance sheet, using retained earnings calculated in part a.