Partial adjusted trial balance data for Kwun Company Inc. is presented in BE. The balance in Share Capital—Ordinary is the balance as January 1. Prepare a retained earnings statement for the year assuming net income is W10,600,000 for the year and Retained Earnings is W0 on January 1. (Present amounts in thousands.)

The adjusted trial balance of Kwun Company Inc. at December 31, 2011, includes the following accounts (in thousands): Share Capital—Ordinary W15,600: Dividends W6,000: Service Revenue W35,400: Salaries Expense W16,000: Insurance Expense W 2,000: Rent Expense W4,000: Supplies Expense W1,500: and Depreciation Expense W1,300. Prepare an income statement for the year. (Present amounts in thousands.)