Question 4 of 8 > 9/27 Tii View Policies Show Attempt History Current Attempt in Progress Novak Company began operations on January 2, 2019. It employs 11 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 8 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 Vacation Days Used by Each Employee 2019 2020 Sick Days Used by Each Employee 2019 2020 2019 2020 $9 $10 0 10 6 7 Novak 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. Your answer is partially correct. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. (If no entry is required, select "No Entry" for the account titles and enter for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation Debit Credit 2019 Salaries and Wages Expense 7744 Salaries and Wages Payable 7744 (To accrue the expense and liability for vacations) Salaries and Wages Expense 4928 Salaries and Wages Payable 4928 (To accrue the expense and liability for sick pay) Salaries and Wages Expense 3520 Cash 3520 (To record payment for compensated time when used by employees) 2020 Salaries and Wages Expense 8712 Salaries and Wages Payable 8712 (To accrue the expense and liability for vacations) Salaries and Wages Expense 5544 Salaries and Wages Payable 5544 (To accrue the expense and liability for sick pay) Salaries and Wages Expense 968 Salaries and Wages Payable 7744 Cash 8712 (To record vacation time paid) Salaries and Wages Expense 176 Salaries and Wages Payable 3784 Cash 3960 (To record sick leave paid) X Your answer is incorrect. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. 2019 2020 Vacation Wages Payable $ 7744 $ 1408 Sick Pay Wages Payable 8712 $ 3168