LO 5 P3-74B. (Learning Objective 5: Making closing entries; evaluating retained earnings) The accounts of Silent Stream Service, Inc., at March 31, 20X6, are listed in alphabetical order. Accounts payable. Accounts receivable. Accumulated depreciation- equipment. Advertising expense.... Cash...... Current portion of note payable....... Depreciation expense. Dividends. Equipment... Interest expense...... $ 14,800 16,900 7,200 11,200 7,200 500 2,200 30,000 44,000 900 Note payable, long term... Other assets... Prepaid expenses....... Retained earnings, March 31, 20X5 Salary expense. Salary payable. Service revenue. Share capital.. Supplies. Supplies expense..... Unearned service revenue... $ 5,900 14,000 5,800 0 22,500 18,200 2,600 95,600 6,200 3,300 4,500 2,900 Requirements 1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Silent Stream's closing entries at March 31, 20X6. 2. Set up a T-account for Retained Earnings and post to that account. Then compute Silent Stream's net income for 20X6. What is the ending balance of Retained Earnings? 3. Did Retained Earnings increase or decrease during the year? What caused the increase or decrease?

L0 6 P3-74B. (Learning Objective 5: Making closing entries; evaluating retained earnings) The accounts of Silent Stream Servioe, Ine, at March 31, 20X6, are listed in alphabetical order. Requirements 1. All adjustments have been joumalized and posted, but the closing entries have not yet been made. Journatize Silent Stream's closing entries at March 31, 206. 2. Set up a T-account for Retained Earnings and post to that account. Then compute Silent Stream's net income for 20X6. What is the ending balance of Retained Earnings? 3. Did Retained Earnings increase or decrease during the year? What caused the increase or decrease