Kris Kringle Toys Inc. is gearing up for the holiday season. The following transactions and events have occurred:

Dec. $1-$ Borrowed $$24,000$ from the Icecap Bank for three years, at $3\%$ 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, $7$ hours per day, and today Santa pays them $$25$ per hour.

Dec. $24-$ As the North Pole is in Canada, Santa has deducted the following in total from the elves' pay: EIT $$2,750$; CPP $$625$; and EI $$400.$ 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 $$9,500$ 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 Owner$$s Equity

no entry is needed until the loan is paid

increase both Cash and Retained Earnings

increase both Cash and Accounts Payable

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 $6$

All of the items are transactions which require entries.

December $5,24,$ and $26$

December $5,26,$ and $28$

December $5$ and $26$ only

December $24,26,$ and $28$