Sparrow Company Adjusted Trial Balance December 31, 2022 Debit Credit Cash $ 3,150 Accounts Receivable 5,650 Prepaid Insurance 4,480 Equipment 42,000 Accumulated Depreciation, Equipment $ 24,000 Accounts Payable 2,800 Salaries Payable 4,450 Unearned Service Revenue 3,875 Common Shares edbe 8,000 Retained Earnings 2,255 Dividends Declared 10,500 nv - Service Revenue To 99,600 Salaries Expense 49,400 Rent Expense 17,250 Insurance Expense 2,200 43200 Depreciation Expense Die 4,950 Income Tax Expense 5,400 Total $144,980 $144,980 Cornerstone Exercise 3-28 Preparing and Analyzing Closing Entries Refer to the information for Sparrow Company above. Required: 1. Prepare the closing entries for Sparrow at December 31, 2022. 2. How does the closing process affect retained earnings