Plumlee Corporation has the following account balances at December 31, 2017

Debit Credit

Services Fees Earned $92,500 cr

Interest Income 2,200 cr

Salaries Expense $41,800 debit

Advertising Expense 4,300 debit

Depreciation Expense 8,700 debit

Income Tax Expense 9,900 debit

Retained Earnings 42,700 cr

Prepare entries to close these accounts in journal entry form. Set up T-accounts for each of the ledger accounts and post the entries to them. After these entries are posted, what is the balance of the Retained Earnings account?

a. $42, 700

b. $72,700

c. $12,700

d. $137,400