Bramble Company began operations on January 2, 2025. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 9 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. Actual Hourly Vacation Days Used Sick Days Used Wage Rate by Each Employee by Each Employee 2025 2026 2025 2026 2025 2026 $10 $11 0 8 4 5 Bramble 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) Your answer is correct. Prepare journal entries to record transactions related to compensated absences during 2025 and 2026. (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. List all debit entries before credit entries.) Date Account Titles and Explanation 2025 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Salaries and Wages Payable Debit Credit 7920 5280 7920 5280 (To accrue the expense and liability for sick pay) Salaries and Wages Payable Cash (To record payment for compensated time when used by employees) 2026 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 accrue the expense and liability for sick pay) 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) 3520 8712 5808 704 7040 176 4664 3520 8712 5808 7744 4840 (b) * Your answer is incorrect. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2025 and 2026. Vacation Wages Payable Sick Pay Wages Payable $ +A 2025 308000 $ 3520 2026 349448 3872