At December 31, 2019, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $78,600; Cost of Goods Sold, $41,300; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends, $5,000; Wages Expense, $8,000, and Interest Payable, $2,100.

Required: 1. Prepare the closing entries for Aulani at December 31, 2019.

Dec. 31 Sales Revenue Income Summary (Close revenues)

Dec. 31 Income Summary Cost of Goods Sold Interest Expense Wages Expense (Close expenses)

Dec. 31 Income Summary Retained Earnings (Close Income Summary)

Dec. 31 Retained Earnings Dividends (Close Dividends)

2. How does the closing process affect Aulani's retained earnings?

Brief Exercise 3-36 (Algorithmic) zing Closing Entries At December 31 2019 th -dger of Aulani Comp.ny includesthe follo ig acount all having normal balances Sales Revonuc. s78.600 cost of Goods sold $41.300 Rctainad Earnings $20.000, Inte est expense $3.200 Dividende s.0001 wages Expense $8 000 nd nterest Pay bl2,100. Required: the closing entres for 78.600 ' 7860D Closa revenuea 20000 X Cost o' Goods Sold V 11a00x1 41am) v Retained Earnings Co Income Summary) D 31 Retained Eanings Dividends 2. How docs the clesing procezs affect Aulanis retained caminga? increas-V 2 Reter to the jounal entries and consider the eftects on retained esmings as the scoune are dosed