Preparing Closing Entries and an After-Closing Trial Balance

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

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 whythe 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.)