Below is the closing journal entry prepared by Bellburn Ltd. on December 31, 2014. Use the closing journal entry to prepare Bellburn Ltd.’s income statement for the year ended December 31, 2014.

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Dr. Revenue Dr. Royalties Cr. Retained earnings 1,137,500 80,250 196,000 Cr. Salaries expense 218,750 Cr. Promotion and advertising expense 61,250 Cr. Depreciation expense 43,750 Cr. Cost of goods sold 468,750 Cr. General and administrative expense 56,000 Cr. Interest expense 21,875 Cr. Rent expense 31,500 Cr. Income tax expense 103,250 Cr. Other expense 16,625