A - Prepare an Income Statement for an Adjusted Trail Balance

The Century Company's adjusted trail balance contains the following balances as of December 31: Retained Earnings $8,500; Dividends $2,000, Sales $20,000; Cost of Good Sold $8,000; Selling and Administrative Expenes $3,000; Interest Expenes $1,5000; Prepare an income statment for the year.

B - Prepare Closing Entries Using the Income Summary Account Use the data from (A) to prepare the closing entries for the Century Compnay. Close the temporary accounts to income summary. The balance of $8,500 in the retained earnings account is from the beginning of the year. What is the ending retained earnings balance after posting the closing entries?