Gargoyle Ltd$.,$ which has a December $31$ year end had the following transactions in December $2024$ andJanuary $2025$:$2024$Dec $1$st: Paid the first installment on a $$50,000$ bank loan. The terms of the loan stipulate that Gargoylemust repay $1/5$ of the principal every December $1$st plus the accrued interest to that date. The loan bearsinterest at $6\%$ per annum and has been outstanding for $12$ months.Dec $31$st: Recorded the $2\%$ Garbucks granted to customers as part of a loyalty program to be used onfuture purchases. The Garbucks were granted on eligible purchases of $$500,000.$ Management expectsthat $20\%$ of the Garbucks awarded to customers will never be redeemed.Dec $31$st: Recorded employee wages for the last two days in December following the last pay day inDecember. The wages earned by employees amounted to $$3,000$ per day and the company recordedCPP of $$327,$ EI of $$95,$ and income taxes of $$1,320.$ Gargoyles employer contributions were $$327$ forCPP and $$133$ for EI$.$Dec $31$st: Recorded the adjusting entry to record the interest incurred on the bank loan duringDecember.Dec $31$st: Recorded the entry to reclassify the current portion of the bank loan$\mathrm{.}2025$Jan $2$nd: Paid the wages recorded on December $31.$Jan $10$th: A customer used the loyalty program to make a purchase of $$8,000.$ The cost of goods sold tothe customer amounted to $$3,200.$Jan $17$th: Made the remittances to the Receiver General related to the December $31$st payroll.Required:a$.$ Prepare the necessary journal entries related to the above transactionsb. Present the Liability section of Gargoyles Balance Sheet.