The accounts of Marciano Services Ltd. at March 31, 2020, 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, 2020.

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, 2020. 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- equipment $14,700 Note payable, long term 16,500 Other assets..... 6.200 14.100 Prepaid expenses. 5,300 7,100 Retained earnings, March 31, 2019 20.200 Advertising expense 10,900 Salary expense. 17,800 Cash.... 7,500 Salary payable.. 2.400 Current portion of note payable. 800 Service revenue 94,100 Depreciation expense 1,900 Share capital... 9,100 Dividends 31,200 Supplies 3,800 Equipment 43,200 Supplies expense. 4,600 Insurance expense 600 Unearned service revenue.... 2,800