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Cheyenne Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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. Cheyenne 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. (To accrue the expense and liability for sick pay) Salaries and Wages Expense Salaries and Wages Payable 1056 Cash 7392 (To record vacation time paid) Salaries and Wages Expense. Salaries and Wages Payable cash 3840 (To record sick leave paid) Cheyenne Company began operations on January 2, 2019. It employs 12 individuals who work 8-hour days and are paid hourly. Each employee earns 11 paid vacation days and 7 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. Cheyenne 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. (To accrue the expense and liability for sick pay) Salaries and Wages Expense Salaries and Wages Payable 1056 Cash 7392 (To record vacation time paid) Salaries and Wages Expense. Salaries and Wages Payable cash 3840 (To record sick leave paid)

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