Use the Falcon Sporting Goods data in Short Exercise S3-12 to make the company's closing entries at March 31, 20X4. Then set up a T-account for Retained Earnings and post to that account. Compare Retained Earnings' ending balance to the amount reported on Falcon's statement of retained earnings and balance sheet. What do you find?

In Short Exercise S3-12

Cost of goods sold..$126,000 900 Retained earnings, March 31,20X31 Accounts receivable.... 27,700 Property and equipment Total current liabilities.. All other expenses 1,300 Cash. 174,500 net. 45,000 Inventories 7,200 26,000 33,000 .. 4,800 Long-term liabilities .