The accounts of Meadowbrook Services, Inc., at March 31, 20X3, are listed in alphabetical order.

Required
1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Meadowbrook's closing entries at March 31, 20X3.
2. Set up a T-account for Retained Earnings and post to that account. Compute Meadowbrook's net income for the year ended March 31, 20X3. What is the ending balance of Retained Earnings?
3. Did Retained Earnings increase or decrease during the year? What caused the increase or the decrease?

Transcribed Image Text:

600 Accounts receivable..16,500 Note payable, long-term...6,200 14,100 5,300 Accounts payable..$14,700 Interest expense... Accumulated depreciation- Advertising expense Other a 7,100 Prepaid expenses. 10,900 Retained earnings, 7,500 9,100 March 31, 20X2.20,200 Salary expens17,800 2,400 Current portion of note Depreciation expense ..1,900 Supplies Dividends 3,800 31,200 Supplies expense....4,600 43,200 Unearned service revenue... 2,800