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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
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:
1. What is the amount of net pay recorded by Hernandez?
2. Make the journal entry to record the payroll.
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