The accounts of Spa View Service, 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 Spa View's closing entries at January 31, 2016.
2. Set up a T-account for Retained Earnings and post to that account. Then compute Spa View'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 2016 fiscal year? What caused the increase or decrease?

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Accounts payable 12,700 Interest expense...$ 800 Accounts receivable...16,600 Note payable, long-term.. 15,900 Accumulated depreciation, Other assets, long-term.13,500 6,500 Prepaid expenses.. 5,800 equipment Advertising expense.... Cash. Common stock Current portion of long term 10,800 Retained earnings, 17,500 8,900 Salary expense... January 31, 201513,700 .27,700 3,400 alary payable.. note payable 1,000 Service revenue..94,100 Depreciation expense-equipment 1,700 Supplies3,300 15,000 Supplies expense4,200 43,000 Unearned service revenue3,700 .. Dividends declared.. Equipment. ...4