2017 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Salaries and Wages Payable (To record sick leave paid) Salaries and Wages Expense Salaries and Wages Payable Cash (To record vacation time paid) SHOW LIST OF ACCOUNTS Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017. (Round answers to O decimal places, e.g. 5,125) 2016 2017 Accrued liability Click if you would like to Show Work for this question: Open Show Work Indigo Company began operations on January 2, 2016. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 12 paid vacation days and 7 paid sick days annually. Vacatiorn 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 Hourly Wage Rate 2016 2017 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2016 2017 2016 2017 $12 $13 0 10 5 6 Indigo Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time. Year in Which Vacation Projected Future Pay Rates Used to Accrue Vacation Pay $12.47 13.46 Time Was Earned 2016 2017 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. Round answers to 0 decimal places, e.g. 5,125.) Credit Date Account Titles and Explanation Debit 2016 Salaries and Wages Expense Salaries and Wages Payable To accrue the expense and liability for vacations) Salaries and Wages Expense Salaries and Wages Payable (To record sick leave paid) Salaries and Wages Payable Cash (To record vacation time paid)