What closing entries would Wendy’s have made in 2021 based on its trial balance?

August 31, 2022 by Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA 1 Comment

Photo of the Wendy's sign outside one of its locations

The Wendy’s Company (NASDAQ: WEN) is a fast-food chain and is a publicly held corporation. Wendy’s fiscal reporting periods consist of 52 or 53 weeks ending on the Sunday closest to December 31. Wendy’s 2021 fiscal year ended January 2, 2022, and its 2020 fiscal year ended January 3, 2021. To follow is a condensed and adapted trial balance as of January 2, 2022, 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.

Wendy’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 and accessibility. The trial balance should not be used for investment decisions; it has been adjusted for educational purposes.

View a quick tutorial video about closing entries at this link and then answer the following questions.

Discussion Questions

  1. What are closing entries? Why are they made?
  2. What accounts on Wendy’s trial balance should be closed?
  3. Using the Wendy’s trial balance, what closing entries would Wendy’s make for 2021?
  4. What was Wendy’s net income for the year ended December 31, 2021?

Copyright 2022 Wendy M. Tietz, LLC

Ch 03 Accrual income, Financial accounting
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About Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA

Dr. Wendy Tietz is a professor of accounting at Kent State University in Kent, Ohio, USA. She is also a textbook author with Pearson Education.
View all posts by Dr. Wendy Tietz, CPA, CMA, CSCA, CGMA →

One Response to “What closing entries would Wendy’s have made in 2021 based on its trial balance?”

  1. Linda A. Stortz, CPA Reply August 31, 2022 at 9:53 am

    Wendy – Isn’t the account, Income & Expense Summary, used in teaching accounting closing entries any longer? I noticed that in your video you close out the income and expenses directly to Retained Earnings.

    Linda A. Stortz, CPA, EA, MAcc
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