The co-op student working at Morneau Equipment Inc. prepared their adjusted trial balance in alphabetical order. All accounts have their normal balances.

Required

1. Prepare the appropriate closing entries for the January 31 year end.

2. What is the balance in the Retained Earnings account after the closing entries have been completed?

hint 1 Closing entries for a corporation

2. Retained Earnings, $185,600

Accounts Receivable $ 56,000 Other Expenses $ 35,400 Accumulated Amortization 14,000 Retained Earnings 78,400 Amortization Expense 1,800 Salaries Expense 199,000 Cash 122,000 Salaries Payable 3,400 Common Shares 50,000 Service Revenue 356,400 Computers & Equipment 74,800 Supplies 5,600 Interest Expense 18,800 Unearned Revenues 5,400 Interest Revenue 5,800