It is December 31 and time for your business to close the books. The following balances appear on the books of Cedrick Owens Enterprises.

a. Dividends, \($11,000\)

b. Service revenue, \($25,200\)

c. Expense account balances: Salary, \($7,500;\) Rent, \($3,000;\) Advertising, \($2,200\) 

Requirements 

1. Set up each T-account given and insert its adjusted balance as given (denote as Bal) at December 31. Also set up a T-account for Retained earnings, \($20,300\) and for Income summary.
2. Post the closing entries to the accounts, denoting posted amounts as C/o.
3. Compute the ending balance of Retained earnings.