Cornerstone Exercise 8-26 (Algorithmic) Payroll Taxes Hernandez Builders has a gross payroll for January amounting to $490,000. The following amounts have been withheld: Federal income taxes $62,000 Social Security 30,380 Medicare 7,105 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 $49,000 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. Wages Expense Federal Income Taxes Withholding Payable Social Security Taxes Payable (Employee) Medicare Taxes Payable (Employee) Charitable Contributions Payable Union Dues Payable Cash (Record wages and liabilities) Federal Unemployment Taxes Expense Social Security Taxes Expense Medicare Taxes Expense Federal Unemployment Taxes Payable Social Security Taxes Payable (Employer) Medicare Taxes Payable (Employer) (Record employer payroll taxes) lll lllll