The accounts of Mar LEARNING OBJECTIVE ciano Services Ltd. at March 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 Marciano Ltd.'s closing entries at March 31, 2014.
2. Set up a T-account for Retained Earnings and post to that account. Compute Marciano's net income for the year ended March 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?

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Accounts payable Accounts receivable Accumulated depreciation_ 14,700 Note payable, long term 16,500 Other assets . 6,200 14,100 5,300 7,100 Retained earnings, March 31, 2013... 20,200 17,800 2,400 Prepaid expenses equipment Advertising expense Cash 10,900 Salary expense 7,500 Salary payable 1,900 Share capital 43,200 Supplies expense Current portion of note payable. 800 Depreciation expense 9,100 3,800 4,600 2,800 31,200 Supplie Equipment Insurance expense 600Unearned service revenue