As of January 1, Retained Earnings had a credit balance of \(\$ 21,800\). During the year, dividends totaled \(\$ 1,500\), and the business incurred a net loss of \(\$ 24,000\).

a. Calculate the balance of Retained Earnings as of the end of the year.

b. Assuming that there have been no recording errors, will the balance sheet prepared at December 31 balance? Explain.