Accounting Chapter 13

The Cash in Bank account is debited for the amount the employees actually earn in the pay period.

• True

• False

The social security tax is paid by both employer and employees.

• True

• False

Amounts deducted from employees’ earnings and held for payment by the employer become liabilities to the business.

• True

• False

The entry for Salaries Expense is recorded each pay period, but the entry for Payroll Tax Expense is recorded only at the end of the year.

• True

• False

An employer normally pays federal withholding taxes, social security taxes, and Medicare taxes once a year.

• True

• False

The total amount of gross earnings is entered on the ____________ side of the Salaries Expense account.

• Debit

• Credit

The account Salaries Expense has a normal ____________ balance.

• Debit

• Credit

The total net pay for the period is recorded as a ___________ to the Cash in Bank account.

• Debit

• Credit

The State Unemployment Tax Payable account is increased by a _____________.

• Debit

• Credit

When federal unemployment taxes are recorded by the employer, a ________ entry is made to the Federal Unemployment Tax Payable account.

• Debit

• Credit