Question

Required:a. All adjustments have been journalized and posted, but the closing entries have not yet been made. Journalize Meadowbrook's closing entries at January 31 , 2018. b. A Retained Earrings has been set up for you- Post to that account Then calculate Meadowbrook's net income for be year ended January 31 , 2018. What is the ending balance of Retained Earnings? c. Did Retained Earnings increase or decrease during the year? What caused the increase or be decrease? Accounts payable . 12,200Accounts receivable 17,000Accumulated depreciation, Equipment 7,200Advertising expense 10,600Cash 17,400Common stock. 1,000Current portion of long-term Note payable 1300Depreciation expense—equipment 1,500Dividends declared 10,000Equipment 42,800Interest expense 300Note payable, long term 15,500Other assets, long-term 13,500Prepaid expenses 5,500Retained earnings, 1/31/2017 13,000Salary expense 27,800Salary payable 3,500Service revenue 97,000Supplies.. 3,000Supplies expense 4,900Unearned service revenue 3,600

Answer 1

Answer:

Explained

Explanation:

• The net income of Meadowbrook's is $51,900.
• Ending balance on retained earnings account is $54,900
• Retained earnings are increased during the year
• Net income of $51,900 caused the retained earning to increase

                                                               DEBIT         CREDIT

Service revenue                                  $97,000

Income statement                                                    $97,000

                                                               DEBIT         CREDIT

Income statement                               $45,000

Depreciation expense—equipment                           $1,500

Advertising expense                                                   $10,600

Interest expense                                                           $300

Supplies expense                                                        $4,900

Salary expense                                                            $27,800

                                                               DEBIT         CREDIT

Retained Earnings                               $10,000

Dividend                                                                    $10,000

                                      Retained Earning Account

             DEBIT                                               CREDIT

Dividend        $10,000               |             Opening balance    $13,000

Closing           $54,900              |              Net income              $51,900

                       $64,900                                                               $64,900