Exercise 13-4 Larkspur Company began operations on January 2, 2016. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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 $13 $11 0 10 6 Larkspur Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discounting. The company used the following projected rates to accrue vacation time Year in Which Vacation Time Was Earned 2016 2017 Projected Future Pay Rates Used to Accrue Vacation Pay $12.26 13.22 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. Round answers to 0 decimal places, e.g. 5,125.) Credit Date Account Titles and Explanation Debit 2016Salaries and Wages Expense 9680 Salaries and Wages Payable 9680 (To accrue the expense and liability for vacations) Salaries and Wages Expense 6160 6160 Cash (To record sick leave paid) Salaries and Wages Expense 4400 4400 Salaries and Wages Payable (To record vacation time paid) 2017 Salaries and Wages Expense 11440 Salaries and Wages Payable 11440 (To accrue the expense and liability for vacations) Salaries and Wages Expense 7280 Cash 7280 (To record sick leave paid) 10400 Salaries and Wages Expense Salaries and Wages Payable 6240 Cash 16640 To record vacation time paid) 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 (Round answers to O decimal places, e.g. 5,125.) 2016 2017 Accrued liability 14320 16400 Click if you would like to Show Work for this question: Open Show Work HOW LIST OF ACCOUNT