Goldfinger Corporation had account balances at the end of the current year as follows: sales revenue, $29,000; cost of goods sold, $12,000; operating expenses, $6,200; and income tax expense, $4,320. Assume shareholders owned 4,000 shares of Goldfinger's common stock during the year. Prepare Goldfingers closing entries for the current t year

sales revenue 29,000 debit

income summary 29,000 credit

income sumamry 10,520 debit

operating expenses 6,200 credit

income tax expense 4,320 credit

income summary 18,480 debit

retained earnings 18,480 credit

Explanation:

To close the temporary account we will use an auxiliar account called income summary.

We will post expense in the credit against income summary in the debit

for revenues we will do the other way around, debit aainst income summary on credit.

Last, we transfer the balcne of this account into retained earnigns.

balance of retained earnings:

29,000 - 10,520 = 18,480