List the accounting cycle steps in proper order. Record and post adjusting entries. Post the transaction to the T-account in the general ledger. Record the transaction. Prepare financial statements (income statement, statement of stockholders' equity. balance sheet, and statement of cash flows). Record and post closing entries. Prepare a trial balance Analyze the impact of the transaction on the accounting equation. Assess whether the transaction results in a debit or a credit to the account balance. Use source documents to identify accounts affected by external transactions.