E13-10 (Compensated Absences-Vacation and Sick Pay) (LO4) Mustafa Limited began operations on January 2, 2013. The company employs nine individuals who work eight-hour days and are paid hourly. Each employee earns 10 paid vacation days and six 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 Wage Vacation Days Used by Each Sick Days Used by Each Rate Employee Employee 2013 2014 2013 2014 2013 2014 $10 $11 0 9 4 5 Mustafa Limited has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when they are earned and to accrue sick pay when it is earned. Instructions (a)