Sid's Grocery Store has 100 employees who earn a wage of $18.75 per hour. Each of Sid's employees has worked a total of 160 hours over the month of July. At the time of recording July's monthly payroll, the following amounts have been withheld:
Federal income tax ...................................................... $30,000
State income tax ............................................................ 8,000
Social Security ............................................................ 18,600
Medicare ..................................................................... 4,350
Charitable contributions ...................................... 1% of gross pay
Union dues ..................................................... 1% of gross pay
Also, the unemployment tax rate is 2% and applies to all but $30,000 of the gross payroll.
Required:
1. What is the amount of net pay recorded by Sid's?
2. Make the journal entries to record the payroll.