Blue Company began operations on January 2, 2025. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 11 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 follows. Blue 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. Salaries and Wages Expense Salaries and Wages Payable Cash (To record vacation time paid) Salaries and Wages Expense Salaries and Wages Payable Cash (To record sick leave paid) \begin{tabular}{rr|} \hline 640 & \\ \hline \\ & \\ & \\ & \\ & \\ & 7400 \\ \hline \end{tabular} Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31 , 2025 and 2026