Stellar Company began operations on January 2, 2019. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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
$10			$11			0		10		5		6

Stellar 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.

1.Prepare journal entries to record transactions related to compensated absences during 2019 and 2020.

2019
	(To accrue the expense and liability for vacations)
	(To accrue the expense and liability for sick pay)
	(To record payment for compensated time when used by employees)
2020
	(To accrue the expense and liability for vacations)
	(To accrue the expense and liability for sick pay)
	(To record vacation time paid)
	(To record sick leave paid)