Exercise 13-3 Skysong Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 10 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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2016 2017 2016 2017 2016 2017 $8 $ 90 1 Skysong 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 partially correct. Try again. 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 5120 Salaries and Wages Payable 5120 (To accrue the expense and liability for vacations) Salaries and Wages Expense 4096 (10 aliue ie expense allu llavilly IUI vaLaLIUI 15) Salaries and Wages Expense 4608) Salaries and Wages Payable 4608 (To accrue the expense and liability for sick pay) X............... .. Salaries and Wages Expense Salaries and Wages Payable 4608 Cash (To record vacation time paid) TOUTU Salaries and Wages Expense Salaries and Wages Payable cash (To record sick leave paid) 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 23 Sick Pay Wages Payable Click if you would like to Show Work for this question: Open Show Work