Thomas Stamping Company provides its 140 employees with a comprehensive benefits package. As part of this package, Thomas allows each of its 140 employees 14 paid sick days per year. The average wage rate for the current year is $145 per day. If employees do not take the sick days in the current year, the days carry over indefinitely and will be paid to the employee upon termination. Employees took 65% of the days during the current year and carried over the remaining sick days to the next year.

Requirement A. Prepare the journal entry required to record the sick days for the current year. (Record debits first, then credits. Exclude explanations from any journal entries.)

Account | Current year

Requirement B. Prepare the journal entry required to record the payment of the sick days in the following year, assuming employees take all remaining says at that time.

Account | Following year

Requirement C. Independent of your answer to parts (a) and (b) prepare the journal entry to record the sick days take in the next year, assuming that the wage rate increased to $157 per day. Employees take all remaining days at that time.

Account | Following year