Hernandez Builders has a gross payroll for January amounting to $500,000. The following amounts have been withheld:
Question:
Income taxes ........... $63,000
Social Security ........... 31,000
Medicare ............. 7,250
Charitable contributions ....... 1% of gross pay
Union dues ............ 2% of gross pay
Also, the federal unemployment tax rate is 6.2 percent, and applies to all but $50,000 of the gross payroll.
Required:
1. What is the amount of net pay recorded by Hernandez?
2. Prepare the journal entries to record the payroll.
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Related Book For
Cornerstones of Financial and Managerial Accounting
ISBN: 978-1111879044
2nd edition
Authors: Rich, Jeff Jones, Dan Heitger, Maryanne Mowen, Don Hansen
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