The following data are for the Grass is Greener Company at the end of 2014, after adjustments, except for the calculation of income tax expense. Assume a income tax rate of 30%.

Accounts payable	$	283,300		Prepaid insurance	$	5,500
Property and equipment		672,200		Contributed capital		382,100
Cost of service expense		182,200		Other revenue		114,300
Supplies		216,400		Unearned revenue		84,100
Service revenue		904,700		Depreciation expense		56,450
Long-term debt		229,900		Accounts receivable		752,950
Interest receivable		2,500		Rent expense		28,800
Retained earnings		188,000		Cash		351,240
Notes payable		363,000		Accrued liabilities		24,400
Income tax payable		0		Prepaid rent		10,500
Accumulated depreciation		130,700		Administrative and general expense (e.g., advertising, utilities, etc.)		66,060
Supplies expense		335,700
Dividends declared		24,000

a)

Prepare an income statement for the year ended December 31, 2014

b.	Prepare an statement of retained earnings for the year ended December 31, 2014