Which of the following statements about payroll accounting is correct? Multiple Choice Social Security and Medicare taxes are paid only by the employer. Employee benefits like vacation time and sick days should be recognized when the employees earn the benefit and not when they take the days off from work. Unemployment taxes are paid by both the employer and the employee. Generally accepted accounting principles require a company's pay period to end at the same time as the company's fiscal year-end. - Corporation Z's attorney has provided the following summaries of three lawsuits against Z: Lawsult A: The loss is probable, but the loss cannot be reasonably estimated. Lawsuit B: The loss is reasonably possible, but the loss cannot be reasonably estimated. Lawsuit C: The loss is reasonably possible and can be reasonably estimated. Which of the following statements is correct? Multiple Choice O A disclosure note is required for each of the three lawsuits. O A disclosure note required only for lawsuits B &C. O A disclosure note is required only for lawsuits A & C. O A disclosure note is required only for lawsuit A. Chan Corp. borrowed $116,000 cash on September 1, 2019, and signed a one-year 6%, Interest-bearing note payable. The Interest and principal are both due on August 31, 2020. Assume that the appropriate adjusting entry was made on December 31, 2019 and that no adjusting entries have been made during 2020. Which of the following would be the required journal entry to pay the note on August 31, 2020? 3 Multiple Choice Interest expense Interest payable Notes payable Cash 4,640 2,320 116,000 122,960 Notes payable Interest expense Cash 116,000 6,960 122,960 Interest payable Notes payable Cash 2,320 116,000 118,320 6,960 Interest expense Cash 6,960