Compensated Absences Matt Broderick Company began operations on January 2, 2016. The following information was provided concerning the company's employees who are paid hourly Number of individuals employed Number of hours worked per day Paid vacation days earned annually by each employee Paid sick days earned annually by each employee 9 employees 8 hours 10 days 6 days 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 Wage Rate Vacation Days Used by Each Emplo Sick Days Used by Each Emplo 2016 $10 2016 2017 $11 2016 4 2017 2017 Matt Broderick 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 follow ng projected rates to accrue vacation time Year in Which Vacation Time Was Earned 2016 2017 Projected Future Pay Rates Used to Accrue Vacation Pay $10.75 11.60 asfroC (a) Preparejournal entries to record transactions related to compensated absences during 2016 and 2017 Accruals Rate 2016 10.75 10 7,740 2017 2017 Payment of Vacation Time Rate 2017 2017 2016 2016 2016 2017 2017 2017 (b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016, and 2017 Accrued liability at year-end: 2016 2017 January 1 balance December 31 balance