Tamarisk 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 Cash dividends-common Common shares Cost of goods sold Dividends payable Income tax expense Income tax payable $24,000 60,500 189,000 313,500 14,000 27,000 3,200 Interest expense Notes payable Retained earnings (Aug. 1, 2020) Salaries expense Sales Supplies expense Unearned revenue $7,400 110,000 371,700 141,000 655,000 10,500 10,500 All accounts have normal balances and total assets equal $817,500. Tamarisk has a 20% income tax rate. (a) Your answer is correct. Prepare a statement of retained earnings. (List items that increase retained earnings first.) TAMARISK INC. Statement of Retained Earnings Year Ended July 31, 2021 Balance, August 1, 2020 $ 371700 Add : Profit/(Loss) 146080 517780 Less Cash Dividends 60500 i Balance, July 31 $ 457280 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 for the amounts.) Debit Credit Date Account Titles and Explanation July 31 Sales 655000 655000 Income Summary (To close revenue account.) Income Summary July 31 509400 Cost of Goods Sold 313500 Income Tax Expense 27000 Interest Expense 7400 Salaries Expense 141000 10500 Supplies Expense (To close expense acc accounts.) (To close expense accounts.) July 31 Income Summary 145600 145600 Retained Earnings (To close Income Summary.) July 31 Retained Earnings 60500 Cash Dividends - Common 60500 (To close dividends.)