(Compensated Absences) Matt Broderick Company began operations on January 2,2016. It employs9individuals 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 eamed. Sick days may be taken as soon as they are earned; unused sick days accumulate. Additional information is as follows. Actual Hourly Vacation Days Used Sick Days Used Wage Rate by Each Employee by Each E 2016 2017 2016 2016 2017 $10 Matt Broderick Company has chosen to accrue the cost of compensated absences at rates of pay ineffect during the period when earned and to accrue sick pay when eamed. 694 Chapter 13 Current Liabilities and Contingencies la Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (b) Compute the amounts of any liability for compensated absences that should be reported on the balancesheet at Decem ber 31, 2016 and 2017. E13-4 (L01) EXCEL (Compensated Absences) Assume the facts in E13-3 except that Matt Broderick Company has chosen not to accrue paid sick leave until used, and has chosen to accrue vacation time at expected future rates of pay without discount- ing. The company used the following projected rates to accrue vacation time. Year in Which Vacation Projected Future Pay Rates Time Was Earned Used to Accrue Vacation Pay 2016 $10.75 2017 Instructions: (a) Prepare journal entries to record transactions related to compensated absences during 2016 and 2017. (b) Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at Decem- ber 31, 2016, and 2017.