Part A:

The Mai Anh Tong Company began operations on January $15$t$,20$X$7.$ It employs sixty individuals who work 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 after January $15$th 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

$20$X$720$X$820$X$720$X$820$X$720$X$8$

$$10\mathrm{.}00$ $$11\mathrm{.}00012610$

The Mai Anh Tong 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.

Part B:

Assume the facts in the preceding as in Part A$,$ except that the Mai Anh Tong 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 uses the following projected rates to accrue vacation time:

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

Year in Which Vacation Projected Future Pay Rates

Time Was Earned Used to Accrue Vacation Pay

$\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_\_$

$20$X$7.......................................................$ $ $8\mathrm{.}50$

$20$X$8.......................................................9\mathrm{.}50$

Required:

$1.$ Prepare the required compound journal entries to record transactions related to compensated absences during $20$X$7$ and $20$X$8.$

$2.$ Calculate the amounts of any liability for compensated absences that should be reported on the balance sheet as at December $31,20$X$8$

I just need Part B to be solved. Thank you