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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
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
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