Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

pls pls its urgen answer asap The North Pole Toy Factory Inc. is gearing up for the holiday season. The following transactions and events have

pls pls its urgen answer asap
image text in transcribed
image text in transcribed
image text in transcribed
image text in transcribed
The North Pole Toy Factory Inc. is gearing up for the holiday season. The following transactions and events have occurred: Borrowed $18,000 from the Arctic Bank Dec. 1 for three years, at 5% interest. Interest is due on the first day of every month, starting on January 1 next year. Hired seven elves to package toys (they Dec. 5 start work tomorrow) and nine reindeer to deliver them on Christmas Eve. Since they were hired, the seven elves have worked for 12 days each, Dec. 24 7.5 hours per day, and today Santa pays them $25 per hour. As the North Pole is in Canada, Santa has deducted the following in total Dec. 24 from the elves' pay: EIT $2300; CPP $650; and El $400. The appropriate employer portion is also accrued The deliveries were successful and the Dec. 26 reindeer are paid with apples, oats, honey, and whatever milk and cookies Santa was able to take away. Santa's accountants, Scrooge, Grinch & Partners, tell Santa that he owes $6000 Dec. 28 for last year's income taxes. He has not paid this amount yet. It will be paid in April. The first interest amount on the loan, Dec. 31 due tomorrow, is accrued. Dec. 28 ers, tell Santa that he owes $6000 for last year's income taxes. He has not paid this amount yet. It will be paid in April. The first interest amount on the loan, Dec. 31 due tomorrow, is accrued. The bank deducts the interest from Jan. 1 Santa's account. Santa pays Revenue Canada the Jan. 15 amount owed with respect to the elves' payroll Use an accounting chart to analyze the above transactions, and then answer the following questions. Question 30 (2 points) How much interest does Santa pay on January 1? (2 marks) A/ Which accounts will be affected, and how, by the January 15 payment? Select all tha apply. (4 marks) a) Wages Expense decreases b) Wages Payable increases c) Employee Benefits Expense increases d) Wages Payable decreases e) CPP Payable decreases f) El Payable increases g) EIT Payable decreases h) Wages Expense increases i) El Payable decreases ni) Cash increases e) CPP Payable decreases f) El Payable increases g) EIT Payable decreases h) Wages Expense increases Oi) El Payable decreases j) Cash increases Ok) EIT Payable increases 1) Cash decreases m) Employee Benefits Expense decreases n) CPP Payable increases

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Horngrens Accounting Volume 1

Authors: Tracie Miller Nobles, Brenda Mattison, Ella Mae Matsumura, Carol Meissner, JoAnn Johnston, Peter Norwood

11th Canadian Edition

0135359708, 9780135359709

More Books

Students also viewed these Accounting questions

Question

What are the assumptions of the test based on the ????-ratio?

Answered: 1 week ago