McDonalds Corporation (NYSE: MCD (Links to an external site.)) is publicly held and issued its financial statements for 2019 at year-end in 2019. To follow is a condensed and adapted trial balance as of December 31, 2019, that was constructed from those financial statements. McDonald's Corporation Trial Balance (adapted for classroom use) For Year Ended December 31, 2019 Balance In millions Debit Credit Cash and cash equivalents $ 1,223.4 Accounts receivable, net 1,474.1 Inventories 58.9 Prepaid and other expenses 2,092.2 Property and equipment, net 21,257.6 Other long-term assets 4,917.7 Accounts payable $ 756.0 Other current liabilities 2,712.3 Long-term debt 25,878.5 Other long-term liabilities 3,881.4 Common stock 16.6 Other stockholders' equity items* 48,443.6 Retained earnings 44,594.5 Net revenues 24,621.9 Expenses 16,877.4 Other expenses and adjustments 3,058.0 Dividends (adjusted) 3,058.3 Total $ 102,461.2 $ 102,461.2 *includes treasury stock and other items Please note that the accounts have been adapted and condensed for educational use and should not be used for investment decisions. McDonalds complete, unabridged financial statements can be found on its investor relations website (Links to an external site.). Note: Dividends are the equivalent of drawings for a corporation. Discussion Questions What are closing entries? Why are they made? What accounts on McDonalds trial balance should be closed? Using the McDonalds trial balance, what closing entries would McDonalds make for 2019? What was McDonalds net income for the year ended December 31, 2019?