The accounts of Marciano Services Ltd. at March 31, 2017, 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, 2017.
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, 2017. 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 Prepaid expenses 7,100 Retained earnings, March 31, 2016.. equipment Advertising expense Cash Current portion of note payable Depreciation expense Dividends Equipment Insurance expense 10,900 Salary expense 7,500 Salary payable 1,900 Share capital 43,200 Supplies expense 17,800 2,400 94,100 9,100 3,800 4,600 2,800 800 Service revenue 31,200 Supplies 600 Unearned service revenue