After all of the closing entries have been posted, an income summary or a post-closing trial balance can be prepared.
The income summary reflects the net income or loss for the period, while the post-closing trial balance ensures that the books are in balance after the closing entries have been made. The post-closing trial balance will typically include only permanent (real) accounts, such as assets, liabilities, and equity accounts, since nominal (temporary) accounts have been closed.
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