Carla 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.

Carla 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 partially 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 $0$ 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

Debit

Credit

$2025$

Salaries and Wages Expense

Salaries and Wages Payable

$($To accrue the expense and liability for vacations$)$

Salaries and Wages Expense

Salaries and Wages Payable

$($To accrue the expense and liability for sick pay$)$

$($To record payment for compensated time when used

by employees$)$

$($To accrue the expense and liability for vacations$)$

$($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