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Goldfinger Corporation Closing Entries

Goldfinger Corporation had account balances at the end of the current year as follows: sales revenue, $27,000; cost of goods sold, $12,000; operating expenses, $6,200; and income tax expense, $3,520. Assume shareholders owned 4,000 shares of Goldfinger’s common stock during the year.

Required:

Prepare Goldfinger’s closing entries for the current year.

Solution

Sales Revenue         27,000
Income Summary         27,000
Income Summary         21,720
Cost of Goods Sold         12,000
Operating Expenses           6,200
Income Tax Expenses           3,520
Income Summary           5,280
Retained Earnings           5,280
Goldfinger Corporation Closing Entries

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