12 . 13. Which of the following illustrates the accounting cycle? 5 Points 1-The Trial Balance is prepared. 2-Postings are made into the General Ledger 3-Journal entries are recorded 4-Transactions occur a. 1, 2, 3, 4 b. 1,3,2,4 c. 4,3,2,1 d. 4, 2, 3,1 Select the transaction that increases owner's equity. a. Received cash from a bill sent to customers last month b. Paid insurance for the next 3 months c. Purchase inventory for cash d. Provided consulting services for cash The proper journal entry to record the $100 purchase of supplies on account would be: a. Office Supplies 100 Accounts payable 100 b. Cash 100 Office Supplies 100 c. Office Supplies 100 Cash 100 d. Accounts payable 100 Office Supplies 100 14. 15. What is the Basic accounting equation? 16. The employer becomes liable for payroll taxes when a. the employee earns the wages b. the employee is paid the wages c. the federal tax return is filed d. the payroll tax return is filed Businesses are classified as monthly or semi-weekly depositors based on a. the look back period rule b. the number of pay periods expected next year c. the amount of federal payroll taxes paid d. the number of employees 17