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?