1. Matt Broderick Company began operations on January 2, 2013. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 9 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 Wage Rate Vacation Days used by each Employee Sick days used by each employee

2013	2014	2013	2014	2013	2014
17	18	0	8	6	7

Matt Broderick 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.

A. Prepare journal entries to record transactions related to compensated absences during 2013 and 2014. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

acct	dr	cr
(2013)salaries and wage exp(DR)
salaries and wage payable(CR)
salaries and wage exp(DR)
salaries and wage payable(CR)
salaries and wage payable(DR)
cash (cr)
2014 salaries and wage exp(DR)
salaries and wage payble(CR)
salaries and wage exp(DR)
salaries and wage payable(CR)
salaries and wage exp(DR)
salaries and wage payable(DR)
cash(CR)
salaries and wage exp(DR)
salaries and wage payable(DR)

(CR) Cash

2. Sheryl Crow Equipment Company sold 594 Rollomatics during 2014 at $6,570 each. During 2014, Crow spent $66,850 servicing the 2-year warranties that accompany the Rollomatic. All applicable transactions are on a cash basis.

Prepare 2014 entries for Crow using the expense warranty approach. Assume that Crow estimates the total cost of servicing the warranties will be $191,000 for 2 years. (If no entry is required, select "No Entry" for the account titles and enter 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.)

ACCOUNT	DEBIT	CREDIT
to record the sale
to record the warranty expense

(to record the warranty liability)