Cornerstone Exercise 8-26 (Algorithmic) Payroll Taxes Hernandez Builders has a gross payroll for January amounting to $600,000. The following amounts have been withheld: Federal income taxes Social Security Medicare $76,000 37,200 8,700 Charitable contributions 1% of gross pay 2% of gross pay Union dues Also, the federal unemployment tax rate is 6.2%, and applies to all but $60,000 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. (Record wages and liabilities) llllll (Record employer payroll taxes)