Exercise 13-3 (Part Level Submission) Riverbed Company began operations on January 2, 2016. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 8 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 2016 2017 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2016 2017 2016 2017 $11 $12 0 10 Riverbed 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. 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 0 for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation 2016 Salaries and Wages Expense Debit Credit 8712 Salaries and Wages Payable To accrue the expense and liability for vacations) Salaries and Wages Expense 8712 6336 6336 Salaries and Wages Payable To accrue the expense and liability for sick pay) Salaries and Wages Payable 4752 Cash 4752 To record payment for compensated time when used by employees) Cash 4752 To record payment for compensated time when used by employees) 2017 Salaries and Wages Expense 9504 Salaries and Wages Payable To accrue the expense and liability for vacations) Salaries and Wages Expense 9504 6912 Salaries and Wages Payable (To accrue the expense and liability for sick pay) Salaries and Wages Expense Salaries and Wages Payable 6912 720 7920 Cash To record vacation time paid) Salaries and Wages Expense Salaries and Wages Payable 8640 144 5904 Cash 6048 (To record sick leave paid) SHOW LIST OF ACCOUNTS SHOW SOLUTION SHOW ANSWER LINK TO TEXT 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 s Sick Pay Wages Payable