The accounts of Cool River Service, Inc., at March 31, 2012, are listed in alphabetical order.

Requirements
1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Cool River€™s closing entries at March 31, 2012.
2. Set up a T-account for Retained Earnings and post to that account. Then compute Cool River€™s net income for the year ended March 31, 2012. What is the ending balance of Retained Earnings?
3. Did Retained Earnings increase or decrease during the 2012 fiscal year? What caused the increase ordecrease?

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Accounts payable Accounts receivable Accumulated depreciation- 14,400 Interest expense....S 400 5,600 14,000 ....5,500 17,000 Note payable, long term... 6,900 Prepaid expenses 7,400 Other assets... equipment. Advertising expense.11,400 Retained earnings, Common stock13,200 Salary expense Current portion o 17,700 2,600 700 Service revenue.91,500 3,000 4,800 f n Salary payable. payable Dividends Equipment 32,500 Supplies expense.. 42,800 Unearned service revenue...