ime left $1$:$00$:$55$Question $6$Not yet answeredMarked out of $17$ Flag questionQuestion textIn this Part of the final exam, there are $10$ questions, worth a total of $17$ points. You must answer all of them. When entering a number, just the digits $-$ no dollar signs, commas, or decimal points, unless instructed otherwise. The select all that apply questions require more than one correct answer. Saint Nick Gifts Inc. is gearing up for the holiday season. The following transactions and events have occurred: Dec. $1-$ Borrowed $$20,000$ from the Far North Bank for three years, at $6\%$ interest. Interest is due on the first day of every month, starting on January $1$ next year. Dec. $5-$ Hired seven elves to package toys $($they start work tomorrow$)$ and nine reindeer to deliver them on Christmas Eve. Dec. $24-$ Since they were hired, the seven elves have worked for $14$ days each, $7\mathrm{.}5$ hours per day, and today Santa pays them $$22$ per hour. Dec. $24-$ As the North Pole is in Canada, Santa has deducted the following in total from the elves' pay: EIT $$2,525$; CPP $$550$; and EI $$350.$ The appropriate employer portion is also accrued. Dec. $26-$ The deliveries were successful and the reindeer are paid with apples, oats, honey, and whatever milk and cookies Santa was able to take away. Dec. $28-$ Santa's accountants, Scrooge, Grinch & Partners, tell Santa that he owes $$8,000$ for last year's income taxes. He has not paid this amount yet. It will be paid in April. Dec. $31-$ The first interest amount on the loan, due tomorrow, is accrued. Jan. $1-$ The bank deducts the interest from Santa's account. Jan. $15-$ Santa pays the Canada Revenue Agency the amount owed with respect to the elves' payroll. If you use an accounting chart to help you analyze the above transactions, you can then answer the following questions. How much interest does Santa pay on January $1?(2$ points$)$Answer $1$ Question $6$ How much, in total, was the elves' gross pay on December $24?(2$ points$)$Answer $2$ Question $6$ How much, in total, was the elves' net pay on December $24?(2$ points$)$Answer $3$ Question $6$ How much does Santa pay the Canada Revenue Agency on January $15?(2$ points$)$Answer $4$ Question $6$ How does Santa record the December $1$ transaction? $(1$ point$)$Multiple choice $1$ Question $6$increase both Cash and Retained Earnings increase both Cash and Accounts Payable no entry is needed until the loan is paid increase both Cash and Owners Equity increase both Cash and Bank Loan Payable Which of the above items are events, not transactions, and require no entry? $(1$ point$)$Multiple choice $2$ Question $6$December $5,26,$ and $28$ December $5,24,$ and $26$ All of the items are transactions which require entries.December $5$ and $26$ only December $24,26,$ and $28$ How does Santa record the December $28$ transaction? $(1$ point$)$Multiple choice $3$ Question $6$increase both Income Tax Payable and Income Tax Expense increase both Income Tax Payable and EIT Expense increase both EIT Payable and EIT Expense Increase Income Tax Expense and decrease Cashincrease both EIT Payable and Income Tax Expense How does Santa record the interest accrual on December $31?(1$ point$)$Multiple choice $4$ Question $6$increase both Interest Payable and Interest Expense increase both Bank Loan Payable and Interest Expense increase both Accounts Payable and Interest Expense increase both Accounts Payable and Bank Fee Expense increase both Interest Payable and Bank Fee Expense no entry required How does Santa record the interest payment on January $1?(1$ point$)$Multiple choice $5$ Question $6$decrease Interest Payable, Bank Loan Payable, and Cashdecrease both Interest Expense and Cash decrease both Accounts Payable and Cash decrease both Bank Loan Payable and Cash decrease both Interest Payable and Cash Which accounts will be affected, and how, by the January $15$ payment? Select all that apply. $(4$ points$)$EI Payable increases CPP Payable decreases Income Tax Expense increases Wages Expense increases Wages Payable decreases Employee Benefits Expense decreasesEmployee Benefits Expense increases Cash increases Income Tax Payable decreases CPP Payable increases EI Payable decreases Cash decreases EIT Payable decreases EIT Payable increases