FIND THE RIGHT ANSWERS TO THE RED PARTS THAT ARE MARKED INCORRECT. PLEASE SHOW EXPLANATION AND COMPUTATIONS

Question 4 Coronado Company began operations on January 2, 2016. It employs 11 Individuals who work 8-hour days and are pald hourly. Each employee earns 9 paid vacation days and 7 paid sick days annually. Vacation days may Actual HourlyVacation Days Used Sick Days Used Wage Rate by Each Employee by Eachys by Each Employee 2016 2017 2016 2017 2016 2017 11 $12 Coronado 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. Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no 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 6776 Salaries and Wages Payable To accrue the expense and liability for sick pay) Salaries and Wages Payable 6776 4840 Cash 4840 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 7392 Salaries and Wages Payable To accrue the expense and liability for sick pay) Salaries and Wages Payable Salaries and Wages Expense 7392 7744 704 Cash To record vacation time paid) Salaries and Wages Payable Salaries and Wages Expense 8448 5104 1232 Cash 6336 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 8712 10472 Sick Pay Wages Payable1936 4224