S3-16. (Learning Objective 5: Making closing entries) Use the Hawk Sporting Goods Company data in Short Exercise 3-15 to make the company’s closing entries at March 31, 20X8.

Then set up a T-account for Retained Earnings and post to that account. Compare Retained Earnings’ ending balance to the amount reported on Hawk’s statement of changes in equity and Balance Sheet. What do you find?