ShamrockInc. 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

$23,000Interest expense

$4,900Cash dividendscommon

64,000Notes payable

116,000Common shares

210,000Retained earnings (Aug. 1, 2020)

308,100Cost of goods sold

314,500Salaries expense

129,500Dividends payable

14,300Sales

673,500Income tax expense

32,500Supplies expense

11,000Income tax payable

4,000Unearned revenue

12,000

All accounts have normal balances and total assets equal $804,500.Shamrockhas a20% income tax rate.

1-Prepare statement of retained earnings.(List items that increase retained earnings first.)

2-Prepare closing entries.(Credit account titles are automatically indented when the amount is entered.Do not indent manually. If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts.)

3-Post the closing entries to Income Summary and Retained Earnings accounts.(Post entries in the order of Journal entry presented in the previous part.)