$ $ 900 16,100 13,800 6,000 13,000 Accounts payable Accounts receivable Accumulated depreciation, equipment Advertising expense Cash Common stock Current portion of long-term note payable Depreciation expense-equipment Dividends declared Equipment 12,800 Interest expense 16,700 Note payable, long term 7,400 Other assets, long-term 11,400 Prepaid expenses 17,000 Retained earnings, January 31, 2020 6,500 Salary expense 1,400 Salary payable 1,600 Service revenue 13,000 Supplies 42,000 Supplies expense Unearned service revenue 26,000 2,400 94,000 4,000 4,000 2,800 Requirement 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, 2021. (Record debits first, then credits. Exclude explanations from any journal entries.) Record the closing entries for Spa View at January 31, 2021. Begin by closing the revenue account. Journal Entry Date Accounts Debit Credit (1) Jan 31 Unearned Service Revenue Service Revenue Next, close the expense accounts. Journal Entry Date Accounts Debit Credit (2) Jan 31 Salary Expense Now close the dividends account. Journal Entry Date Accounts Debit Credit (3) Jan 31 Requirement 2. A T-account for Retained Earnings has been set up for you. Post to that account. Then calculate Spa View's net income for the year ended January 31, 2021. What is the ending balance of Retained Earnings? Post the beginning balance and closing entries to Retained Earnings in the T-account by selecting the respective posting references and then entering the correct amounts. Determine the ending balance. Retained Earnings The net income for 2021 was Requirement 3. Did Retained Earnings increase or decrease during the year? What caused the increase or decrease? Retained Earnings during 2021 because