Larkspur 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 $24,500 Cash dividends-common 59,000 Interest expense Notes payable $4,800 114,000 Common shares 213,000 Retained earnings (Aug. 1, 2020) 324,500 Cost of goods sold 318,000 Salaries expense 137,500 Dividends payable 16,000 Sales 674,500 Income tax expense 31,500 Supplies expense 12,000 Income tax payable 3,300 Unearned revenue 11,500 All accounts have normal balances and total assets equal $818,500. Larkspur has a 20% income tax rate. Prepare a statement of retained earnings. (List Items that Increase retained earnings first.) LARKSPUR INC. Statement of Retained Earnings " > 67 $ Question 38 of 39