Problem 1 Red Hot Company compensates its employees for certain absences for vacation and sickness. Employees are entitled to one-day vacation plus one-day sick leave for each month worked during the year. Unused vacation days may be carried forward, but unused sick leave does nit accumulate. Employees are compensated according to their pay in effect at the time of the leave. The following data were taken from the records for the year 2016. Date of Unused Initial vacation Employment 1/1/16 Vacation Sick leave ta ken in taken in 2016 2016 Rate Per day 9450 Employee A. B. Santos 01/07/2014 0 7 C. D. Garcia 06/28/15 6 3 E. F. Cruz 11/01/2015 0 0 G. H. Buen 08/01/2015 D H Required: 1. Compute the balance of the account Liability for Compensated Absences at December 31, 2015. 2. Compute the amount of employee benefit cost for sick leave and vacation leave for the year 2016. 3. Prepare the entry for the payment of compensated absences for sick leave and vacation leave during 2016. 4. Prepare the entry for the accrual of compensated absences at December 31, 2016. Problem 2 Green Grass Corporation grants its employees then working days of paid sick leave for each year. Any sick leave not used may be carried forward for one calendar year only. At December 31,2015, the average unused sick leave of each of its 60 employees is 4 days. The company estimates that 40 of its employees will take a maximum of ten days during 2016, while the remaining will take an average of 13 days during 2016. The average daily rate of an employee is 9450. During 2016, 35 employees each took 12 days of sick leave, while the u..." nnnnnn 'II: Emmi nnnnnnnnn I... &.-..-.I, an An..- at .:-I