a. List down the steps involved in Accounting Cycle.

b. Prepare an income statement, statement of retained earnings for the year ending December 31, 2018 and Balance Sheet as at December 31, 2018.

MCLAIN ADVERTISING AGENCY TRIAL BALANCE DECEMBER 31, 2018 Cr. Cr. Unadjusted Dr. 11,000 20,000 8,400 3,350 60,000 Adjusted Dr. 11,000 21,500 5,000 2,500 60,000 28,000 5,000 ---- 5,000 7000 35,000 5,000 150 5,000 5,600 Cash Accounts Receivable Art supplies Prepaid insurance Printing equipment Accumulated depreciation Accounts payable Interest payable Notes payable Unearned advertising revenue Salaries payable Common stock Retained earnings Advertising revenue Salaries expense Insurance expense Interest expense Depreciation expense Art supplies expense Rent expense ---- 10,000 3,500 58,600 1,300 10,000 3,500 61,500 10,000 350 11,300 850 500 7,000 3,400 4,000 $ 127,050 4,000 $ 117,100 $ 117,100 $ 127,050