Exercise 13-3 Teal Company began operations on January 2, 2016. It employs 11 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 Vacation Days Used by Each Employee Sick Days Used by Each Employee 2016 $9 2017 2016 $100 2017 10 2016 6 2017 7 Teal 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. ur 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 Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Cash (To accrue the expense and liability for sick pay) x No Entry XE No Entry (To record payment for compensated time when used by employees) 2017 Salaries and Wages Expense Salaries and Wages Payable (To accrue the expense and liability for vacations) Salaries and Wages Expense Cash (To accrue the expense and liability for sick pay) (To record vacation time paid) Salaries and Wages Expense Salaries and Wages Payable Cash (To record sick leave paid) SHOW LIST OF ACCOUNTS LINK TO TEXT X Your answer is incorrect. Try again. 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