LO5 P3-63A. (Learning Objective 5: Close the books, and evaluate retained earnings) The accounts of Valley Services, Inc., at January 31, 2018, are listed in alphabetical order. $ 400 $14,000 5,000 15,400 14,400 6,600 26,000 Accounts payable Accounts receivable........ Accumulated depreciation, equipment ....... 7,000 Advertising expense....... 10,800 Cash....... Common stock 4,500 Current portion of long-term note payable 1,000 Depreciation expense-equipment 2,100 Dividends declared 15,000 Equipment.. 43,000 Interest expense............... Note payable, long term... Other assets, long-term .... Prepaid expenses............ Retained earnings, January 31, 2017 Salary expense..... Salary payable Service revenue. Supplies Supplies expense..... Unearned service revenue... 13,600 26,300 2,300 96,000 2,400 4,500 2,700 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? P3-64A. (Learning Objectives 4, 6: Construct the financial statements; analyze and evaluate liquidity and debt-paying ability) Refer back to Problem 3-63A. Requirements 1. Use the Valley Services data in Problem 3-63A to prepare the company's classified balan sheet at January 31, 2018