Cornerstone Exercise 8-26 (Algorithmic) Payroll Taxes Hernandez Builders has a gross payroll for January amounting to $560,000. The following amounts have been withheld: Federal income taxes $71,000 Social Security 34,720 Medicare 8,120 Charitable contributions 1% of gross pay Union dues 2% of gross pay Also, the federal unemployment tax rate is 6.2%, and applies to all but $56,000 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. If an amount box does not require an entry, leave it blank. 0001 IIIIIII IIIIII IIIIIII IIIIII (Record employer payroll taxes)