Preparing and Analyzing Closing Entries

At December $31,$ the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $$63,500$; Cost of Goods Sold, $$33,300$; Retained Earnings, $$20,000$; Interest Expense, $$3,200$; Dividends $($declared and paid$),$ $$5,000$; Wages Expense, $$8,000,$ and Interest Payable, $$2,100.$

Required:

Prepare the closing entries for Aulani at December $31.$ If an amount box does not require an entry, leave it blank.

Dec. $31$

Dec. $31$

Wages Expense $$

Dec. $31$ Retained Earnings $$

Dividends $$

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$2.$ How does the closing process affect Aulani's retained earnings?