Te accounts of Red River Services, Inc., at January 31, 2014, are listed in alphabetical order.

Requirements
1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Red River’s closing entries at January 31, 2014.
2. Set up a T-account for Retained Earnings and post to that account. Then compute Red River Services’ net income for the year ended January 31, 2014. What is the ending balance of Retained Earnings?
3. Did Retained Earnings increase or decrease during the year? What caused the increase or thedecrease?

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Accounts payable...S12,600 Interest expensc.S 300 Accounts receivable.... Accumulated depreciation, Note payable, long term.15,700 Other asses10,100 .5,000 16,600 6,700 Prepaid expenses 11,300 Retained earnings, cquipment. Advertising expens. Cash Common stock..10,00 Salry expense.. Current portion of long-term 17.200 anuary 31, 2013 313,800 26,900 · 2,500 Salary payabl... note payable. Depreciation expense . 1,000 Supplies 12,00 Supplies expens 4,700 Dividends declared Equipment.... 5,000 52,500 Uncred scrvice revenuc3,700