Chapter 4, Problem 4.8E

(a)

To determine

Retained Earnings: Retained Earnings are the total earnings of the company to be reinvested into the business after distributing the dividend to Shareholders.

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 Trial Balance: Post closing trial balance is the statement of trial balance which is prepared after journalizing the closing entries and posting them to the respective ledgers.

Closing entries: Closing entries are those journal entries which are passed to transfer the balances of temporary accounts to the permanent accounts. These are passed at the end of the accounting period, to transfer the final balance.

To Prepare: The closing entries as on July 31, 2019, Accounts of Income Summary and Retained Earnings and Post Closing Trial Balance.

(b)

To determine

To Post: the Income Summary and Retained Earnings Accounts.

 (c)

To determine

To Prepare: Post-Closing Trial Balance.