PAYROLL TAXES Hernandez Builders has a gross payroll for June amounting to $400,000. The following amounts have been withheld:

Federal income tax $70,000 State income tax 30,000 Social Security 9,000 Medicare 3,000 Charitable contributions 1% of gross pay Union dues 2% of gross pay Also, the unemployment tax rate is 3 percent, and applies to all but $50,000 of the gross payroll.

Required:

. What is the amount of net pay recorded by Hernandez?

. Make the journal entry to record the payroll.

Cornerstone Exercise