Use the data from SE3-8 to prepare the closing entries for The Decade Company. Close the temporary accounts to income summary. The balance of \(\$ 8,500\) in the retained earnings account is from the beginning of the year. What is the ending retained earnings balance after posting the closing entries?

Exercise SE3-8

The Decade Company's adjusted trial balance contains the following balances as of December 31: Retained Earnings \(\$ 8,500\); Dividends \(\$ 2,000\); Sales \(\$ 22,000\); Cost of Goods Sold \(\$ 8,000\); Selling and Administrative Expenses \(\$ 3,000\); Interest Expense \(\$ 1,500\). Prepare an income statement for the year.