The following totals for the month of March were taken from the payroll records of Kern Company.

Salaries $54,000

FICA taxes withheld 4,131

Income taxes withheld 11,880

Medical insurance deductions 783

Federal unemployment taxes 432

State unemployment taxes 2,700

The State unemployment tax is

a. Payed by the employee alone.

b. Split between the employer and the employee.

c. Payed by the employer alone.

d. Payed by the Federal Government.

West County Bank agrees to lend Drake Builders Company $200,000 on January 1. Drake Builders Company signs a $200,000, 6%, 6-month note. What entry will Drake Builders Company make to pay off the note and interest at maturity assuming that interest has been accrued to March 31 (following the previous question)?

a. Notes Payable 206,000

Cash 206,000

b. Notes Payable 200,000

Interest Payable 6,000

Cash 206,000

c. Interest Expense 6,000

Notes Payable 200,000

Cash 206,000

d. Interest Payable 3,000

Notes Payable 200,000

Interest Expense 3,000

Cash 206,000

The following totals for the month of April were taken from the payroll records of Noll Company.

Salaries $60,000

FICA taxes withheld 4,590

Income taxes withheld 12,500

Medical insurance deductions 2,250

Federal unemployment taxes 160

State unemployment taxes 1,080

Which item is not payed out of the employees pocket?

a. FICA taxes

b. Income taxes withheld

c. Federal unemployment taxes

d. Medical insurance deductions