Answer:
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.
<u>balance of retained earnings: </u>
29,000 - 10,520 = 18,480
