On December 31, 2016, Ditka Inc. had Retained Earnings of $271,800 before its closing entries were prepared and posted. During 2016, the company had service revenue of $172,100 and interest revenue of $83,300. The company used supplies in the amount of $89,900, advertising expenses were $16,800, salaries and wages totaled $18,900, and income tax expense was calculated as $14,500. During the year, the company declared and paid dividends of $6,400.

1. Prepare the closing entries dated December 31, 2016.

2. Prepare T-account for the Retained Earnings account.