Windsor Company began operations on January 2, 2016. It employs 8 individuals who work 8-hour days and are paid hourly. Each employee earns 9 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
2016			2017			2016		2017		2016		2017
$7			$8			0		8		5		6

Windsor 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.

Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (If no entry is required, select "No Entry" for the account titles and enter O for the amounts. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Date Account Titles and Explanation 2016 Salaries and Wages Expense Debit Credit 4032 Salaries and Wages Payable 3136 (To accrue the expense and liability for vacations) Salaries and Wages Expense 4032 Salaries and Wages Payable 3136 (To accrue the expense and liability for sick pay) Salaries and Wages Payable 2240 Cash 2240 (To record payment for compensated time when used by employees) 2017 Salaries and Wages Expense 4608 3584 Salaries and Wages Payable (To accrue the expense and liability for vacations) 4608 Salaries and Wages Expense Salaries and Wages Payable 3584 (To accrue the expense and liability for sick pay) 4608 Salaries and Wages Expense Salaries and Wages Payable Cash (To record vacation time paid) Salaries and Wages Expense Salaries and Wages Payable Cash (To record sick leave paid) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2016 and 2017. 2017 2016 4608 Vacation Wages Payable $ Sick Pay Wages Payable$ 4032 3136 $ 3584