Preparing and Analyzing Closing Entries

At December 31, 2019, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $63,700; Cost of Goods Sold, $33,400; 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. If an amount box does not require an entry, leave it blank.

Dec. 31	Sales Revenue	fill in the blank 62944501c01d044_2
	Income Summary		fill in the blank 62944501c01d044_4
	(Close revenues)
Dec. 31	Income Summary	fill in the blank 62944501c01d044_6	fill in the blank 62944501c01d044_7
	Cost of Goods Sold	fill in the blank 62944501c01d044_9	fill in the blank 62944501c01d044_10
	Interest Expense	fill in the blank 62944501c01d044_12	fill in the blank 62944501c01d044_13
	Wages Expense	fill in the blank 62944501c01d044_15	fill in the blank 62944501c01d044_16
	(Close expenses)
Dec. 31	Income Summary	fill in the blank 62944501c01d044_18
	Retained Earnings		fill in the blank 62944501c01d044_20
	(Close Income Summary)
Dec. 31	Retained Earnings	fill in the blank 62944501c01d044_22
	Dividends		fill in the blank 62944501c01d044_24
	(Close Dividends)

2. How does the closing process affect Aulani's retained earnings? Decrease of $fill in the blank 36af4cfe0facfd5_2