MCLAIN Advertising Agency was founded in January 2010. Presented below are adjusted and unadjusted trial balances as of December 31, 2014.

MCLAIN ADVERTISING AGENCY TRIAL BALANCE DECEMBER 31, 2018 Unadjusted Dr. Adjusted Dr. Cr. Cr. Cash 11,000 11,000 21,500 5,000 2,500 60,000 Accounts Receivable 20,000 8,400 3,350 60,000 Art supplies Prepaid insurance Printing equipment Accumulated depreciation Accounts payable Interest payable Notes payable Unearned advertising 28,000 5,000 35,000 5,000 150 5,000 5,600 --0- 5,000 7000 revenue Salaries payable Common stock Retained earnings Advertising revenue Salaries expense Insurance expense Interest expense Depreciation expense Art supplies expense Rent expense --0- 1,300 10,000 10,000 3,500 58,600 3,500 61,500 10,000 11,300 850 350 500 7,000 3,400 4,000 $ 127,050 4,000 $ 117,100 $ 117,100 $ 127,050 Required a. List down the steps involved in Accounting Cycle. b. Prepare an income statement, statement of retained earnings for the year ending December 31, 2018 and Balance Sheet as at December 31, 2018.