The North Pole Toy Factory Inc. is gearing up for the holiday season. The following transactions and events have occurred: Dec. 1 Borrowed $18,000 from the Arctic Bank 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. Dec. 24 Dec. 24 Since they were hired, the seven elves have worked for 12 days each, 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 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. Dec. 28) Dec. 31 Santa's accountants, Scrooge, Grinch & Partners, 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, due tomorrow, is accrued. The bank deducts the interest from How much interest does Santa pay on January 1? (2 marks) A/ How much, in total, was the elves' gross pay on December 24? (2 marks) How much does Santa pay the elves on December 24? (2 marks) A How much does Santa pay Revenue Canada on January 15, with respect to the elves' December payroll? (2 marks) How does Santa record the December 28 transaction? (1 mark) a) increase both Income Tax Payable and Income Tax Expense b) increase both EIT Payable and Income Tax Expense c) increase both EIT Payable and EIT Expense d) increase both Income Tax Payable and EIT Expense e) Increase Income Tax Expense and decrease Cash How does Santa record the interest accrual on December 31? (1 mark) a) increase both Bank Loan Payable and Interest Expense b) no entry required c) increase both Interest Payable and Bank Fee Expense Od) increase both Interest Payable and Interest Expense Which accounts will be affected, and how, by the January 15 payment? Select all that apply. (4 marks) a) Cash increases b) El Payable decreases c) CPP Payable decreases d) Employee Benefits Expense increases e) Wages Expense increases f) Wages Payable increases g) EIT Payable decreases Oh) Wages Expense decreases. i) Employee Benefits Expense decreases O Cash decreases k) EIT Payable increases