The accounts of Granger Services, Inc., at January 31, 2016, are listed in alphabetical order.

Requirements
1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Granger's closing entries at January 31, 2016.
2. Set up a T-account for Retained Earnings and post to that account. Then compute Granger's net income for the year ended January 31, 2016. 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 payabl. $12,200 Interest expenseS500 16,000 13,700 6,500 Prepaid expenses... 5,900 17,000 Note payable, long term Other assets, long-term Accumulated depreciation, equipment Advertising expense. Cash.. Common stoc. Current portion of long-term 11,300 Retained earnings, January 31, 2015.13,300 26,100 3,400 17,400 5,300 alary expense. Salary payab.. note payable. 3,500 12,500 Supplies expense 42,000 Unearned service revenue... Equipment 2,800