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

Equipment $ $21,500$

Accounts payable $10,500$

Common stock $25,500$

Dividends $8,500$

Services revenue $58,500$

Rent revenue $12,500$

Salaries expense $40,500$

Advertising expense $6,500$

Utilities expense $4,500$

$($a$)$ Prepare its year$-$end income statement.

$($b$)$ Prepare its year$-$end statement of retained earnings, using net income calculated in part a$.$ Hint: Retained Earnings on January $1$ was $$0.$