Exercise 13-3 (Part Level Submission) Crane Company began operations on January 2, 2016. It employs 8 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. Actual Hourly Wage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee 2016 2017 2016 2017 2016 2017 $6 $7 0 8 4 5 Crane 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 correct. Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter o for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2016 Salaries and Wages Expense 3456 Salaries and Wages Payable 3456 (To accrue the expense and liability for vacations) Salaries and Wages Expense 2304 Salaries and Wages Payable 2304 (To accrue the expense and liability for sick pay) Salaries and Wages Payable 1536 CASH 1536 (To record payment for compensated time when used by employees) 2017 Salaries and Wages Expense 4032 Salaries and Wages Payable 4032 (To accrue the expense and liability for vacations) Salaries and Wages Expense 2688 Salaries and Wages Payable 2688 (To accrue the expense and liability for sick pay) (To accrue the expense and liability for sick pay) Salaries and Wages Expense 512 Salaries and Wages Payable 3072 CASH 3584 (To record vacation time paid) Salaries and Wages Expense 128 Salaries and Wages Payable 2112 Cash 2240 (To record sick leave paid) (b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017. 2016 2017 Vacation Wages Payable $ Sick Pay Wages Payable $ $