WildhorseCompany began operations on January 2, 2016. It employs12individuals who work 8-hour days and are paid hourly. Each employee earns10paid vacation days and8paid 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 HourlyWage Rate Vacation Days Used by Each Employee Sick Days Used by Each Employee

2016 2017 2016 2017 2016 2017

$12 $13 0 9 6 7

WildhorseCompany 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.

Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017.

2016 2017

Vacation Wages Payable

Sick Pay Wages Payable