Allen Insurance Agency started the year with a beginning Retained Earnings balance of $24,500. During the year,

Question:

Allen Insurance Agency started the year with a beginning Retained Earnings balance of $24,500. During the year, Allen earned $34,000 of Service Revenue and incurred $22,500 of various expenses. Dividends of $16,000 from the business were paid to stockholders. After the closing entries are recorded and posted, what will be the balance of Retained Earnings?