breported for 20x97 eportrOF 20X97 What eds(ompeorporated town incurred and paid compensated absences for vacation pay and mpensated Absences and Claims and Judgments) of $40,000 during its first yearof operation, 20X1. sick Ic and of 20XI, the town estimated that its total liability for compensated absences, one 2. on 20X2, the town paid $130,000 for compensated absences for vacation pay and sick t the h is payable from available expendable financial resources, was $75,000 leavhe end of 20x2, the town estimated that its total liability for compensated absences was 4.Of the $160,000 liability for compensated absences, $5,000 was deemed to be pay- able from available expendable financial resources. In 20X3, the town paid $210,000 for compensated absences for vacation pay and sick leave. 6. At the end of 20X3, the town estimated that its total liability for compensated absences was 000. None of the $140,000 liability for compensated absences was deemed to be payable $140, from available expendable financial resources. a. Prepare the journal entries required in the General Ledger of the town's General Fund to b. What amount of liabilities should be reported in the General Fund balance sheet for compen- Re record the information in the preceding items. sated absences for each of these years? pensated absences? if the payments and liabilities involved had been for claims and judgments instead of for com- c. What amount of expenditures must the town report each year in the General Fund for com- d. Calculate the amount of expenditures that would have been reported each year by the town pensated absences