Matt Broderick Company began operations on January 2, 2013. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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 2016 2017 Sick days used by each employee 2016 2017

$10 $11 0 9 4 5 (a)Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016, and 2017. Please explain each step with each calculation