The accounts of Spa View Service, Inc., at March 31, 2010, are listed in alphabetical order.

Requirements
1. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Spa Views closing entries at March 31, 2010.
2. Set up a T-account for Retained Earnings and post to that account. Then compute Spa Views net income for the year ended March 31, 2010. What is the ending balance of Retained Earnings?
3. Did Retained Earnings increase or decrease during the year? What caused the increase or thedecrease?

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Accounts payable Accounts receivable Accumulated depreciation $14,400 Interest expense … $ 900 16,100 Note payable, long term 6,100 6,900 Prepaid expenses 6,000 equipment Advertising ex .. 10,900 Retained earnings, 7,900 5,600 Salary expen 17,800 2,900 95,000 3,600 4,400 41,700 Unearned service revenue... 2,700 Common stock Current portion of note Salary payable 1,000 Service revenue … 1,700 Supplies paya Depreciation expense.. Dividends Equipmen