Preparing and Analyzing Closing Entries At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $77,400; Cost of Goods Sold, $40,600; Retained Earnings, $20,000; Interest Expense, $3,200; Dividends (declared and paid), $5,000; Wages Expense, 58,000 , and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulanl at December 31. If an amount box does not require an entry, leave it blank. 2. How does the closing process affect Aulan's retained earnings? of s 2. How does the closing process affect Aulani's retained earnings? of