Concept explainers
(a)
Income Summary: The Income summary is the summary prepared at the end of a period for all the revenues and expenses. The excess of revenues over expenses is referred to as Net Profit and the excess of expenses over revenues is referred to as Net Loss.
Post Closing
Closing entries: Closing entries are those
To Prepare: The closing entries as on July 31, 2019, Accounts of Income Summary and Retained Earnings and Post Closing Trial Balance.
(b)
To Post: the Income Summary and Retained Earnings Accounts.
(c)
To Prepare: Post-Closing Trial Balance.
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