An analysis of the transactions made by Cookie Mountain Legal, a law firm, for the month of July is shown below. Each increase and decrease in stockholders' equity is explained. 
Instructions
(a) Prepare an income statement for the month ending July 31, 2018.
(b) Prepare a retained earnings statement for the month ending July 31, 2018.
Definitions:
Cost-Push Inflation
A sustained rise in the price level caused by a leftward shift of the aggregate supply curve.
Major Wars
Large-scale, high-intensity conflicts between countries or significant groups, often with substantial impacts on societies, economies, and environments.
Deflation
A decrease in the general price level of goods and services in an economy over a period, often indicating reduced consumer demand or excessive supply.
Aggregate Demand Curve
The aggregate demand curve represents the total demand for goods and services in an economy at different price levels, generally showing an inverse relationship between price and output demanded.
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