1. What are closing entries? Why are they made?
2. What accounts on Facebook's trial balance should be closed?
3. Using the Facebook trial balance, what closing entries would Facebook make for 2015?
4. What was Facebook's net income for the year ended December 31, 2015?

l11; d2|.lonestar.edu C l lOl l & What closing entries would Facebook make for fiscal year 2015? Facebook, Inc., is a publicly held corporation and issued its financial statements for 2015 in mid-2016. To follow is a condensed and adapted trial balance as of December 31, 2015, that was constructed from those financial statements. Please note that the accounts have been adapted and condensed for educational use and should not be used for investment decisions. Facebook, Inc. Consolidated trial balance (adapted for classroom use) As of December 31, 2015 (in millions) Debit Credit Cash and cash equivalents $ 4,907 Marketable securities 13,527 Accounts receivable, net 2,559 Prepaid and other expenses 659 Property and equipment, net 5,687 Intangible assets, net 3,246 Other long-term assets 18,822 Accounts Davable S 196 lll=_ d2l.lonestar.edu lOl l & Facebook, Inc. Consolidated trial balance (adapted for classroom use) Cash and cash equivalents Marketable securities Accounts receivable, net Prepaid and other expenses Property and equipment, net Intangible assets, net Other long-term assets Accounts payable Other current liabilities Capital lease obligations, long-term Other long-term liabilities Common stock and other Beginning retained earnings Net revenues Expenses Other expenses and adjustments Totals As of December 31, 2015 $ (in millions) Debit Credit 4,907 13,527 2,559 559 5,687 3,246 18,822 $ 196 1,729 107 3,157 34,431 6,099 17,928 11,703 2,537 53,547 $ 63,647 d21.lonestar.edu C f Topic #3 - ACCT-2301 6005 8W2 Principles of Financial Ac... https://d21.lonestar.edu/content/enforced/851323-018061-... https://d21.lonestar.edu/content/enforced/851323-018061-... Course Hero Capital lease obligations, long-term 107 Other long-term liabilities 3,157 Common stock and other 34,431 Beginning retained earnings 6,099 Net revenues 17,928 Expenses 11,703 Other expenses and adjustments 2,537 Totals $ 63,647 63,647 Facebook's complete, unabridged financial statements can be found on its investor relations website. Questions 1. What are closing entries? Why are they made? 2. What accounts on Facebook's trial balance should be closed? 3. Using the Facebook trial balance, what closing entries would Facebook make for 2015? 4. What was Facebook's net income for the year ended December 31, 2015? Source: Wendy Tietz, PhD, CPA, CMA, AccountingintheHeadlines.com This work is licensed under a Creative Commons Attribution-NonCommercial 3.0 Unported License