The accounts of Valley Services, 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 Valley’s closing entries at January 31, 2018.

2. Set up a T-account for Retained Earnings and post to that account. Then calculate Valley’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 the decrease?

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Accounts payable .. $14,000 2$ 400 Interest expense.. Note payable, long term... Other assets, long-term Prepaid expenses . Retained earnings, Accounts receivable. . 5,000 15,400 14,400 Accumulated depreciation, equipment . Advertising expense. .... 7,000 10,800 6,600 January 31, 2017.. Salary expense.. Salary payable. Service rev Cash. 26,000 4,500 13,600 26,300 2,300 96,000 2,400 . Common stock. . Current portion of long-term note payable.. 1,000 Depreciation expense-equipment 2,100 15,000 43,000 enue..... Supplies. . Supplies expense.. Unearned service revenue ... Dividends declared.. 4,500 2,700 Equipment.