Rexallo Company begins business on January 2 2016 with 15 employees Its company policy is to permit each employee to take 6 days of paid sick leave each year and 1 7 / 2 days of paid vacation leave or each month worked . The sick leave , if not used accumulates to a 24 - day maximum . The vacation leave accumulates for 2 years , but at any time after a 1 - year period , the employee may request additional compensation in lieu of taking paid vacation leave Rexallo prefers to record the liability fo compensated absences on a quarterly basis Assume that the gross salaries for each employee are $100 per day The following selected events take place during the first two quarters of 2016 On March 31 2016 , the quarterly liability for compensated absences is to be recorded On April 30 , 2016 , the following 545 090 monthly payroll , including paid vacation and sick leave , is summarized from Rexa lo's records Payroll for Time Worked Vacation Taken Sick Leave Taken Salaries 542 090 51 800 51 200 On June 30 2016 , the quarterly liability for compensated absences is to be recorded Required Prepare journal entries to record the preceding events , ignoring payroll taxes Ether and assuming that both sick leave and vacation time meet the requirements of GAAP for acorva Prepare a partial interim balance sheet as of June 30 2016 , to disclose the