Facebook, Inc., which also owns Instagram, Messenger, WhatsApp, and Oculus (virtual reality products), generates substantially all of

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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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Financial Accounting

ISBN: 9781264229734

11th Edition

Authors: Robert Libby, Patricia Libby, Frank Hodge

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