Exercise 3-6 Organize the steps in the accounting cycle (LO3-3, 3-4, 3-5, 3-6, 3-7) 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