Preparing and Analyzing Closing Entries At December 31, the ledger of Aulani Company includes the following accounts, all having normal balances: Sales Revenue, $62,700; Cost of Goods Sold, \$32,900; Retained Earnings, \$20,000; Interest Expense, \$3,200; Dividends (declared and paid), $5,000; Wages Expense, $8,000, and Interest Payable, $2,100. Required: 1. Prepare the closing entries for Aulani at December 31 . If an amount box does not require an entry, leave it biank. 2. How does the closing process affect Aulani's retained earnings? of 1