Answer
Make sure to understand the difference between "Income Tax Expense" and "Income Tax Payable" and similarly for other related items. Consequently, classify them in appropriate category as follows;
Work Step by Step
Note that retained earnings opening balance is provided and you need to calculate closing balance by adjusting profits / loss (calculated using income statement) and dividends (provided) in order to arrive at the closing retained earnings figure which should be reflected in the equity section of balance sheet.
