Prepare Closing Entries to Retained Earnings The Century Companys adjusted trial balance contains the following balances as of December 31: Retained Earnings $13,600; Dividends $3,200; Sales $32,000; Cost of Goods Sold $12,800; Selling and Administrative Expenses $4,800; Interest Expense $2,400. Prepare the closing entries for The Century Company. Close the temporary accounts straight to retained earnings.

Prepare Closing Entries to Retained Earnings The Century Company's adjusted trial balance contains the following balances as of December 31: Retained Earnings $13,600; Dividends $3,200; Sales $32,000; Cost of Goods Sold $12,800; Selling and Administrative Expenses $4,800; Interest Expense $2,400. Prepare the closing entries for The Century Company. Close the temporary accounts straight to retained earnings. Credit 32,000 General Journal Description Debit Sales 32,000 Retained earnings 0 To close the revenue account. Retained earnings 20,000 Cost of goods sold 0 Selling and administrative expense Interest expense 0 To close the expense accounts. Relained earnings . 10,400 x Dividends 0 To close the dividends account. 12,800 4,800 2,400 10,400 *