Refer to the information in M3-20. Prepare journal entries for each of parts \(a, b\) and \(c\).

Assume that the company has not yet closed any accounts to retained earnings. Prepare journal entries to close the temporary accounts above. Set up the needed T-accounts and post the closing entries. After these entries are posted, what is the balance of the Retained Earnings account?

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($ millions) Debits Credits Net sales..... $83,503 Cost of goods sold.. $40,695 Selling, general and administrative expense 25,725 Interest expense, net 1,005 Income tax expense. 4.003 Retained earnings 36,911