Culver Company began operations on January 2, 2025. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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 Wage Rate by Each Employee Sick Days Used by Each Employee 2025 2026 2025 2026 2025 2026 $11 $12 0 10. 4 5 Culver 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 following projected rates to accrue vacation time. Year in Which Vacation Time Was Earned 2025 Projected Future Pay Rates Used to Accrue Vacation Pay $11.70 2026 12.60 Date Account Titles and Explanation 2025 Salaries and Wages Expense 2026 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense (To record sick leave paid) (To record vacation time paid) Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Cash (To record sick leave paid) Salaries and Wages Expense Salaries and Wages Payable Cash (To record vacation time paid) Debit Credit