As of December 31, 2018, XYZ Companys unadjusted trial balance shows the following accounts and balances:

Account	Debit	Credit
Cash	$60,000
Accounts Receivable	0
Supplies	70,000
Prepaid Insurance	19,000
Prepaid Rent	3,800
Machinery	12,000
Accumulated Depreciation Machinery		$2,500
Equipment	40,000
Accumulated Depreciation Equipment		20,000
Accounts Payable		11,200
Salaries Payable		0
Unearned Services Revenue		28,600
Common Stock		11,000
Retained Earnings, 12/31/17		60,500
Dividends	20,000
Consulting Revenue		129,200
Services Revenue		68,000
Depreciation Expense Machinery	0
Depreciation Expense Equipment	0
Salaries Expense	44,200
Insurance Expense	0
Rent Expense	29,600
Supplies Expense	0
Advertising Expense	19,000
Utilities Expense	13,400
Totals	331,000	331,000

The following items are noted in a review of the accounts after close:

1. An analysis of company insurance policies shows that $9,500 of coverage has expired.
2. An inventory count shows that supplies costing $20,000 remain available at year-end.
3. Annual depreciation on the equipment is $5,000.
4. Annual depreciation on the machinery is $2,400.
5. On 11/1/18, XYZ agreed to a five (5) month contract (effective immediately) for a customer. The contract calls for a $14,300 monthly fee, and the client paid the first two (2) months fees in advanc When the fees were received, the Unearned Services Revenue account was credited. The remaining three months will be recorded when paid in 2019.
6. On 10/15/18, XYZ agreed to a four (4) month contract (effective immediately) for a customer for consulting services. The contract calls for a monthly payment of $2,300 per month, but as of 12/31/18, no payment has been received.
7. XYZ has one employee that is paid weekly. As of 12/31/18, three (3) days salary (at the rate of $150/day) has accrued.
8. The balance for Prepaid Rent listed in the unadjusted trial balance represents December rent.

Given the information above, please complete the following accounting cycle steps:

1. Create T-accounts with balances from the unadjusted trial balance.
2. Prepare the necessary adjusting journal entries for items (a) through (h) above.
3. Update the T-accounts you created in (1) to post the entries referenced in (2) above.
4. Prepare the adjusted trial balance after the adjusting journal entries have been posted.
5. Prepare the income statement for the year ending 12/31/18:
6. Prepare the statement of retained earnings for the year ending 12/31/18
7. Prepare the balance sheet as of 12/31/18

Finally, make the entries to close the books for 2018 and prepare the post-closing trial balance.