The accounts of Lazy River Service, Inc., at January 31, 2014, are listed in alphabetical order.

Requirements
1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Lazy River’s closing entries at January 31, 2014.
2. Set up a T-account for Retained Earnings and post to that account. Then compute Lazy River’s net income for the year ended January 31, 2014. What is the ending balance of Retained Earnings?
3. Did Retained Earnings increase or decrease during the 2014 fiscal year? What caused the increase ordecrease?

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Interest expens.. 400 Accounts receivable17,200 Note payablc, long-term.. . 15,600 Other assets..12,200 5,500 Accounts payab. 13,900 Accumulated depreciation, quipmcnt. . . . Advertising expens. Cash 6,900 Prepaid expenses 11,500 Retained carnings, 17,400 January 31, 2013 13,200 Salary expensc.... 10,600 21,700 .2,600 92,700 4,000 4,800 3,600 Current portion of long term Salary payable note payab. Depreciation expense Dividends declared. Equipment... 2,700 Service revenuc. 2,000 upplies 22,300 Supplies expens. 42,800 Uned service revenue