The accounts of Meadowbrook Service, Inc., at January 31, 2018, are listed in alphabetical order.

Requirements

1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Meadowbrook’s closing entries at January 31, 2018.

2. Set up a T-account for Retained Earnings and post to that account. Then calculate Meadowbrook’s net income for the year ended January 31, 2018. What is the ending balance of Retained Earnings?

3. Did Retained Earnings increase or decrease during the fiscal year? What caused the increase or decrease?

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Accounts payable . $ 10,000 Interest expense... 200 Accounts receivable.. Note payable, long-term... Other assets, long-term .. Prepaid expenses . Retained earnings, 1,000 15,600 13,900 5,000 Accumulated depreciation, equipment .. Advertising expense.. 7,100 11,200 22,000 1,500 Cash.. January 31, 2017 Salary expense.. Salary payable.. 13,700 27,800 Common stock.. Current portion of long term note payable. 2,000 95,500 6,400 5,000 Service revenue. 2,200 Depreciation expense-equipment 2,100 13,000 43,000 Supplies. . Supplies expense.. . Unearned service revenue .. Dividends declared... Equipment... 3,000