Question

Shamrock Company began operations on January 2, 2016. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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 fallows. Vacation Days Used by Each Employee 2016 2017 2016 2017 2016 2017 Actual Hourly Wage Rate Sick Days Used by Each Employee $7 $8 0 Shamrock Company has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when eaed and to accrue sick pay when eamed. Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation 2016 Salaries and Wages Expense Debit Credit alaries and Wages Payable To accrue the expense and liability for vacations) alaries and Wages Expense alaries and Wages Payable To accrue the expense and liability for sick pay) alaries and Wages Payable To record payment for compensated time when used by employees) 2017 Salaries and Wages Expense alaries and Wages Payable To accrue the expense e and liability for vacations) laries and Wages Expense alaries and Wages Payable To accrue the expense and liability for sick pay) alaries and Wages Expense alaries and Wages Payable ash To record vacation time paid) alaries and Wages Expense alaries and Wages Payable ash To record sick leave pald CQ กาวute 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 Payable Sick Pay Wages Payable $

Answer 1