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Matt Broderick Company began operations on January 2, 2013. It employs 9 individuals who work 8-hour days and are paid hourly.Each employee earns 10 paid vacation days and 6 paid sick daysannually. Vacation days may be taken after January 15 of the yearfollowing the year in which they are earned. Sick days may be takenas soon as they are earned; unused sick days accumulate. Additionalinformation is as follows.
Actual Hourly
Vacation Days Used
Sick DaysUsed
Wage Rate
by EachEmployee
2013
2014
$10
$11
0
9
4
5
(a) Prepare journal entries to recordtransactions related to compensated absences during 2013 and 2014
(b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31,2013 and 2014
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