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Vaughn Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 8 paid sick days annually. Vacation days may be taken after January 15 of the year following the year in which they are earned. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual HourlyVacation Days Used Wage Rate 2016 2017 by Each Employee 2016 2017 2016 2017 $8 $9 Vaughn Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when earned and to accrue sick pay when earned Prepare journal entries to record transactions related to absences during 2016 and 2017. (If no entry is required, select No Entry for the account indented when amount is entered. Do it indent manually.) Date Account Titles and Explanation Credit 2016 (To record payment for compensated time when used by employees) 2017 80 888
CES 2017 To accrue the expense and liability for vacations) udy (To record sick leave paid) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017, 2016 2017 Vacation Wages Payables Sick Pay Wages Payable
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