Brief Exercise 8-49 Payroll Taxes 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 8,000 State income tax 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? 233,050 2. Make the journal entries to record the payroll. If an amount box does not require an entry, leave it blank. Wages Expense 300,000 Federal Income Taxes Withholding Payable 30,000 State Income Taxes Withholding Payable 8,000 Social Security Taxes Payable (Employee) 18,600 Medicare Taxes Payable (Employee) 4,350 Charitable Contributions Payable 3,000 Union Dues Payable 3,000 Wages Payable X 233,050 (Record wages and liabilities) Federal Unemployment Taxes Expense 28,350 Social Security Taxes Payable (Employer) X 18,600 Medicare Taxes Payable (Employer) X 4,350 Federal Unemployment Taxes Payable 5,400 lll Wages Expense X (Record employer payroll taxes)