Matt Broderick Company began operations on January 2, 2016. It employs 9 individuals who work 8-hour days and are paid hourly. Each employee earns 10 paid vacation days and 6 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
2013 2014 2013 2014 2013 2014
$14 $15 0 9 6 7
Matt Broderick 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 2013 and 2014. (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.)
Account Titles and Explanation Debit Credit
2013
(To accrue the expense and liability for vacations)
(To accrue the expense and liability for sick pay)
(To record sick leave paid)
2014
(To accrue the expense and liability for vacations)
(To accrue the expense and liability for sick pay)
(To record vacation time paid)
(To record payment for compensated time when used by employees)