Cornerstone Exercise 8-26 (Algorithmic) Payroll Taxes Hernandez Builders has a gross payroll for January amounting to $510,000. The following amounts have been withheld: Federal income taxes Social Security Medicare $64,000 31,620 7,395 1% of gross pay 2% of gross pay Charitable contributions Union dues Also, the federal unemployment tax rate is 6.2%, and applies to all but $51,000 of the gross payroll. Required: 1. What is the amount of net pay recorded by Hernandez? 2. What is the a 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 lllllll (Record employer payroll taxes)