Facebook, Inc., which also owns Instagram, Messenger, WhatsApp, and Oculus (virtual reality products), generates substantially all of its revenue from selling advertising placements to marketers. Following is a trial balance listing accounts that Facebook uses. Assume that the balances are unadjusted at the end of a recent fiscal year ended December 31.

Required:
1. Based on the information in the unadjusted trial balance, list types of adjustments on the balance sheet that may need to be adjusted at December 31 and the related income statement account for each (no computations are necessary). You may need to make assumptions.
2. Which accounts should be closed at the end of the year? Why?

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1 2 3 4 5 LO 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 FACEBOOK, INC. Unadjusted Trial Balance (in millions of dollars) At December 31 Cash Marketable securities (short-term investments) Accounts receivable Prepaid expenses and other current assets Land Buildings Network, computer, and office equipment Accumulated depreciation Operating lease right-of-use assets Intangible assets Other assets Accounts payable Operating lease liabilities, current Accrued expenses and other current liabilities Deferred revenue and deposits Other current liabilities Operating lease liabilities, noncurrent Other liabilities Debit 17,576 44,378 11,335 2,381 1,326 35,264 24,461 9,348 19,673 2,758 Credit 15,418 1,331 1,023 11,152 382 1,093 9,631 6,414