The accounts of For You eTravel Inc. at December 31, 2014, are listed in alphabetical order.

Requirements
1. All adjustments have been journalized and posted, but the closing entries have not been made. Journalize For You eTravel Inc.'s closing entries at December 31, 2014.
2. Set up a T-account for Retained Earnings and post to that account. Compute For You's net income for the year ended December 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 the decrease?

Transcribed Image Text:

Accounts payable Accounts receivable Accumulated depreciation-furniture11,600 December 31, 2013 Advertising expense Cash Depreciation expense1,300 Service revenue Dividends Furniture Interest expense Note payable, long term S 5,100 Other assets 3,600 6,600 Retained earnings, 5,300 24,600 3,900 93,500 15,000 7,700 5,700 3,600 2,200 Salary expense 7,300 Salary payable 47,400 Share capital 41,400 Supplies 800 $10,600 Supplies expense Unearned service revenue