Sheffield Company began operations on January 2, 2019. It employs 10 individuals who work 8-hour days and are paid hourly. Each employee earns 10 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		Sick Days Used by Each Employee
2019		2020		2019		2020		2019		2020
$6			$7			0		9		6		7

Sheffield 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.

(a)

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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 0 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	4800
	Salaries and wages payable		4800
	(To accrue the expense and liability for vacations)
	Salaries and wages expense	3840
	Salaries and wages payable		3840
	(To accrue the expense and liability for sick pay)
	Salaries and Wages Payable	2880
	Cash		2880
	(To record payment for compensated time when used by employees)
2020	Salaries and wages expense	5600
	Salaries and Wages Payable		5600
	(To accrue the expense and liability for vacations)
	Salaries and Wages expense	4480
	Salaries and wages payable		4480
	(To accrue the expense and liability for sick pay)
	Salaries and wages expense	720
	Salaries and wages payable	4320
	Cash		5040
	(To record vacation time paid)
	Salaries and wages expense	160
	Salaries and wages payable	3760
	Cash		3920
	(To record sick leave paid)

QUESTION: 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		$enter a dollar amount		$enter a dollar amount
Sick Pay Wages Payable		$enter a dollar amount		$enter a dollar amount