monsters Inc began operations on January 1, 2019. The company employs 15 monsters whose jobs are to scare little children. They are paid eight-hour days and are paid hourly. Each employee earns 15 paid vacation days and 10 paid sick days annually. Vacation days may be taken immediately. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows:

Actual Hourly

Wage Rate 2019........ 2020

.....................$14... ...... $15

Vacation Days Used by Each Employee

2019 ...............2020

12 14

Sick Days Used by Each Employee

2019 .................2020

10.......................8

Monsters Inc has chosen to accrue the cost of compensated absences at rates of pay in effect during the period when they are earned and to accrue sick pay when it is earned.

Required:

a) Prepare journal entry(ies) to record the transactions related to vacation

entitlement during 2019 and 2020.

b) Prepare journal entry(ies) to record the transactions related to sick days

during 2019 and 2020.

c) Calculate the amounts of any liability for vacation pay and sick days that

should be reported on the balance sheet at December 31, 2019 and 2020