Green Lawns, Inc., performs adjusting entries every month, but closes its accounts only at year-end. The companys year-end adjusted trial balancedated December 31, 2015, was:

GREEN LAWNS, INC.
ADJUSTED TRIAL BALANCE
DECEMBER 31, 2015
Cash	$182,200
Accounts receivable	9,000
Supplies	600
Equipment	24,000
Accumulated depreciation: equipment		$10,000
Accounts payable		3,000
Income taxes payable		7,000
Capital stock		50,000
Retained earnings		90,000
Dividends	4,000
Lawn care revenue earned		192,000
Salary expense	104,000
Supply expense	2,400
Advertising expense	600
Depreciation expense: Equipment	2,000
Income taxes expense	23,200	_______
	$352,000	$352,000

GREEN LAWNS, INC.
INCOME STATEMENT
DECEMBER 31, 2015
Revenue
Lawn care revenue		$192,000
Expenses
Supply expense	$2,400
Salary expense	104,000
Depreciation expense: Equipment	2,000
Advertising expense	600
Total expenses		-109,000
Income before tax		$83,000
Less: Income tax		-23,200
Net Income		$59,800

GREEN LAWNS, INC.
STATEMENT OF RETAINED EARNINGS
DECEMBER 31, 2015
Beginning Retained Earnings	90,000
Add: Net Income	59,800
Subtotal	149,800
Less: Dividends	4,000
Ending Retained Earnings	145,800

GREEN LAWNS, INC.
BALANCE SHEET
DECEMBER 31, 2015
Assets
Cash		182,200
Accounts receivable		9,000
Supplies		600
Equipment	24,000
Less: Accumulated depreciation	-10,000	14,000
Total assets		205,800
Liabilities & Stockholders' Equity
Liabilities:
Accounts payable	3,000
Income taxes payable	7,000
Total liabilities		10,000
Stockholders' Equity:
Capital stock	50,000
Retained earnings	145,800
Total stockholders' equity		195,800
Total liabilities & stockholders' equity		205,800

Refer to the adjusted trial balance of Green Lawns, Inc., illustrated in Exercise 5.2 to respond to the following items:

a. Prepare all necessary closing entries at December 31, 2015.

b. Prepare an after-closing trial balance dated December 31, 2015.

c. Compare the Retained Earnings balance reported in the after-closing trial balance prepared in part b to the balance reported in the adjusted trial balance. Explain why the two balances are different. (Include in your explanation why the balance reported in the after-closing trial balance has increased or decreased subsequent to the closing process.)