What closing entries would McDonald's have made in 2016 based on its trial balance? McDonald's Corporation (NYSE: MCO) is a publicly held corporation and issued its financial statements for 2016 in 2017. To follow is a condensed and adapted trial balance as of December 31, 2016, that was constructed from those financial statements. McDonald's Corporation Trial Balance (adapted for classroom use) For Year Ended December 31, 2016 Balance Credit $ in millions Debit 1.223.4 1,474.1 58.9 2,0922 21,257.6 4,9177 $ W Cash and cash equivalents Accounts receivable, net Inventories Prepaid and other expenses Property and equipment, net Other long-term assets Accounts payable Other current liabilities Long-term debt Other long-term liabilities Common stock Other stockholders' equity items Retained earnings Net revenues Expenses Other expenses and adjustments Dividends (adjusted) Total includes treasury stock and other items 756.0 2,7123 25,878.5 3,8814 16.6 48,443.6 44,594.5 24,6219 16.8774 3,058.0 3,058.3 $ 102,461.2 $ 102,4612 Please note that the accounts have been adapted and condensed for educational use and should not be used for investment decisions McDonald's complete, unabridged financial statements can be found on its investor relations website Note: The trial balance above can also be downloaded in Excel format for enhanced readability Discussion Questions 1. What are closing entries? Why are they made? 2. What accounts on McDonald's trial balance should be closed? 3. Using the McDonald's trial balance, what closing entries would McDonald's make for 2016? 4. What was McDonald's net income for the year ended December 31, 2016