1. 2. 3. 4. Explain each step of the Accounting Cycle. Assume the following: XYZ Engineering Supplies Company had the following transactions (Please, use the Chart of Accounts on the next page): Issued capital stock for $50,000. Purchased $25,000 of inventory on account. 5. Sold inventory costing $5,000 for $10,000 on account. 6. Paid $5,000 for inventory purchased on account (from item2). 7. Collect $4,800 of accounts receivable (from item3). 8. Paid salaries for $2,500