18. Randy's Services provides general home repairs to customers. The company's fiscal year-end is December 31. The December 31, 2021, adjusted trial balance appears below.

Adjusted Trial Balance

Account Title	Debit	Credit
Cash	$18,100
Accounts Receivable	16,200
Supplies	3,000
Prepaid Insurance	3,750
Equipment	95,000
Accumulated Depreciation		$40,800
Accounts Payable		10,500
Salaries Payable		4,200
Utilities Payable		1,900
Interest Payable		2,000
Notes Payable		40,000
Common Stock		24,000
Retained Earnings		10,500
Dividends	2,500
Service Revenue		224,900
Salaries Expense	162,700
Depreciation Expense	13,600
Insurance Expense	11,250
Supplies Expense	17,400
Utilities Expense	13,300
Interest Expense	2,000
Total	$358,800	$358,800

Required:

Complete the following steps:

1. Record closing entries.
2. Calculate account balances of retained earnings after closing entries are made.