As of December 31, 2018, XYZ Company's unadjusted trial balance shows the following accounts and balances: Debit Credit $60,000 70,000 19,000 3,800 12,000 $2,500 40,000 20,000 11,200 Account Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Machinery Accumulated Depreciation - Machinery Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries Payable Unearned Services Revenue Common Stock Retained Earnings, 12/31/17 Dividends Consulting Revenue Services Revenue Depreciation Expense - Machinery Depreciation Expense - Equipment Salaries Expense Insurance Expense Rent Expense Supplies Expense Advertising Expense Utilities Expense Totals 28,600 11,000 60,500 20,000 129,200 68,000 0 44,200 0 29,600 19,000 13,400 331,000 331,000 The following items are noted in a review of the accounts after close: a. An analysis of company insurance policies shows that $9,500 of coverage has expired. b. An inventory count shows that supplies costing $20,000 remain available at year-end. C. Annual depreciation on the equipment is $5,000. d. Annual depreciation on the machinery is $2,400. e. 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 advance. When the fees were received, the Unearned Services Revenue account was credited. The remaining three months will be recorded when paid in 2019. f. 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. g. 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. h. 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 (8) Finally, make the entries to close the books for 2018 and prepare the post-closing trial balance. (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 in (1) to post the entries referenced in (2) above. (4) Prepare the adjusted trial balance after the adjusting journal entries have been posted. Debit Credit Account Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Machinery Accumulated Depreciation - Machinery Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries Payable Unearned Services Revenue Common Stock Retained Earnings, 12/31/17 Dividends Consulting Revenue Services Revenue Depreciation Expense - Machinery Depreciation Expense - Equipment Salaries Expense Insurance Expense Rent Expense Supplies Expense Advertising Expense Utilities Expense Totals (5) Prepare the income statement for the year ending 12/31/18: ABC Company Income Statement For the Year Ended December 31, 2018 (6) Prepare the statement of retained earnings for the year ending 12/31/18 ABC Company Statement of Retained Earnings For the Year Ended December 31, 2018 Prepare the balance sheet as of 12/31/18 ABC Company Balance Sheet As of December 31, 2018 Assets Liabilities Equity (7) Finally, make the entries to close the books for 2018 and prepare the post-closing trial balance. Debit Credit Account Cash Accounts Receivable Supplies Prepaid Insurance Prepaid Rent Machinery Accumulated Depreciation - Machinery Equipment Accumulated Depreciation - Equipment Accounts Payable Salaries Payable Unearned Services Revenue Common Stock Retained Earnings, 12/31/17 Dividends Consulting Revenue Services Revenue Depreciation Expense - Machinery Depreciation Expense - Equipment Salaries Expense Insurance Expense Rent Expense Supplies Expense Advertising Expense Utilities Expense Totals