It is question 13-4

2. The zero-interest-bearing note. E13.3 (LO 1) (Compensated Absences) Broderick Company began operations on January 2, 2019. 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. 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. Instructions a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019 and 2020. E13.4 (LO 1) Excel (Compensated Absences) Assume the facts in E13.3 except that 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 discounting. The company used the following projected rates to accrue vacation time. Instructions a. Prepare journal entries to record transactions related to compensated absences during 2019 and 2020. b. Compute the amounts of any liability for compensated absences that should be reported on the balance sheet at December 31, 2019, and 2020