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The Decade Company's adjusted trial balance contains the following balances as of December 31:
Retained Earnings $8,500;
Dividends $2,000;
Sales $22,000;
Cost of Goods Sold $8,000;
Selling and Administrative Expenses $3,000;
Interest Expense $1,500.
Problem 1: Prepare the closing entries for The Decade Company. Close the temporary accounts straight to retained earnings. 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?
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