Kingbird Inc. has recorded all necessary adjusting entries, except for income tax expense, at its fiscal year end, July 31, 2021. The following information has been taken from the adjusted trial balance: Accounts payable $22,000 Interest expense $6,700 Cash dividends-common 56,500 Notes payable 114,500 Common shares 215,000 Retained earnings (Aug. 1, 2020) 326,000 Cost of goods sold 312,500 Salaries expense 149,500 Dividends payable 14,700 Sales 661,500 Income tax expense 29,000 Supplies expense 12,000 Income tax payable 3,000 Unearned revenue 11,500 All accounts have normal balances and total assets equal $802,000. Kingbird has a 20% income tax rate. Prepare a statement of retained earnings. (List items that increase retained earnings first.) KINGBIRD INC. Statement of Retained Earnings Year Ended July 31, 2021 > $ vi v: $ Prepare closing entries. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. If no ent is required, select "No Entry" for the account titles and enter for the amounts.) Date Account Titles and Explanation Debit Credit July 31 (To close revenue account.) July 31 (To close expense accounts.) July 31 (To close Income Summary.) July 31 (To close dividends.) Post the closing entries to Income Summary and Retained Earnings accounts.(Post entries in the order of Journal entry presented in the previous part.) Income Summary Date Explanation Ref Debit Credit Balance July 31 Closing entry J1 July 31 Closing entry J1 July 31 Closing entry J1 Retained Earnings Date Explanation Ref Debit Credit Balance Aug. 1 Balance July 31 Closing entry 1 July 31 Closing entry 1 List of Accounts