Coates Inc. experienced the following events in Year 1, its first year of operation:

Received $20,000 cash from the issue of common stock.

Performed services on account for $38,000.

Paid the utility expense of $2,500.

Collected $21,000 of the accounts receivable.

Recorded $15,000 of accrued salaries at the end of the year.

Paid a $2,000 cash dividend to the shareholders.

What is the balance in the Retained Earnings account after closing Year 1?