URGENTTTTTT 3 E Kris Kringle Toys Inc. is gearing up for the holiday season. The following transactions and events have occurred: Dec. 1 Hired seven elves to package toys (they Dec. 5 start work tomorrow) and nine reindeer to deliver them on Christmas Eve. Dec. 24 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. 24 Dec. 26 90 F3 Dec. 28 Dec. 31 Jan. 1 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. 4 As the North Pole is in Canada, Santa has deducted the following in total from the elves' pay: EIT $2750; CPP $625; and El $400. The appropriate employer portion is also accrued The deliveries were successful and the 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 $9500 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 Santa's account. Santa pays Revenue Canada the R F4 % 5 E5 T 6 Y & 7 38 U 8 00 Call F8 1 9 F2 0 F10 P F11

Kris Kringle Toys inc. is gearing up for the holiday season. The following transactions and events have occurred: Which accounts will be affected, and how, by the January 15 payment? (4 marks) A. Cash, CPP Payable, El Payable, and EIT Payable all decrease B. Cash, CPP Payable. EI Payable, and EIT Payable all decrease, and Wages Expense increases C. Cash, CPP Payable, El Payable, and income Tax Payoble all decrease D. Cash, CPP Payable. El Payable, and Income Tax PayableTall decrease, and Employee Benefits Expense increases E. Cash, CPP Payable, EI Payable, and EIT Payable all decrease, and Employee Bencfits Expense increases F. Cash and Emplovee Benefits Payable both decrease G. Cash, CPP Payable, EI Payable, and EIT Payable all decrease, and Wages Expense and Employet Benefits Expense both increase H. Cash, CPP Payable, El Payable, and EIT Payable all decrease, and Wages Expense increases Enter the letter that corresponds to your choice. (A B C D E F G H1) REQUIRED: Use an accounting chart to analyze the above transactions, and then answer the following questions. ENTRY RULES: Numeric answers must be entered with digits only - no dollar signs, commas, decimal points or pennies. How much interest does Santa pay on January 1 ? (2 marks) How much, in total, was the elves' gross pay on December 24 ? (2 marks) How much will Santa pay the elves on December 24 ? (2 marks) How does Santa record the interest accrual on December 31 ? (1 mark) A. increase both Bank Loan Payable and Bank Fees Expense B. increase both Bank Loan Payable and Interest Expense C. increase both interest Payable and interest Expense D. increase both Accounts Payable and Interest Expense E. increase both Accounts Payable and Bank Fees Expense F. increase both Interest Payable and Bank Fees Expense Enter the letter that corresponds to your choice. (A B C D E F)) How does Santa record the interest payment on January 1 ? (1 mark) A. decrease Interest Payable, Accounts Payable, and Cash B. decrease Accounts Payable, Bank Loan Payable, and Cash C. decrease both Bank Loan Payable and Cash D. decrease Interest Payable, Bank Loan Payable, and Cash E. decrease both Accounts Payable and Cash F. decrease both Interest Payable and Cash Enter the letter that corresponds to your choice. (A B C D EF) Which of the above items are events, not transactions, and require no entry? (1 mark) A. December 5,26 , and 28 B. December 5 and 26 only C. December 5,24 , and 26 D. December 5,24,26, and 28 E. December 24,26 , and 28 F. All of the items are transactions which require entries. Enter the letter that corresponds to your choice. (A B CD EF) A How does Santa record the December 28 transaction? (1 mark) A. increase both EIT Payable and Income Tax Expense B. increase both Income Tax Payable and EIT Expense C. increase both EIT Payable and EIT Expense D. increase both Income Tax Payable and Income Tax Expense E. increase Income Tax Expense and decrease Cash F. increase EIT Expense and decrease Cash Enter the letter that corresponds to your choice. (A B C D E F) How much will Santa pay the elves on December 24 ? (2 marks) A How much does Santa pay to the Canada Revenue Agency on January 15, with respect to the elves' December payroll? (2 marks) A How does Santa record the December 1 transaction? (1 mark) A. increase both Cash and Accounts Payable B. increase both Cash and Owner's Equity C. increase both Cash and Interest Payable D. increase both Cash and Retained Earnings E. increase both Cash and Bank Loan Payable F. No entry is needed until the loan is paid. Enter the letter that corresponds to your choice. (A B C D E F) Which of the above items are events, not transactions, and require no entry? (1 mark) A. December 5,26 , and 28 Kris Kringle Toys inc. is gearing up for the holiday season. The following transactions and events have occurred: Which accounts will be affected, and how, by the January 15 payment? (4 marks) A. Cash, CPP Payable, El Payable, and EIT Payable all decrease B. Cash, CPP Payable. EI Payable, and EIT Payable all decrease, and Wages Expense increases C. Cash, CPP Payable, El Payable, and income Tax Payoble all decrease D. Cash, CPP Payable. El Payable, and Income Tax PayableTall decrease, and Employee Benefits Expense increases E. Cash, CPP Payable, EI Payable, and EIT Payable all decrease, and Employee Bencfits Expense increases F. Cash and Emplovee Benefits Payable both decrease G. Cash, CPP Payable, EI Payable, and EIT Payable all decrease, and Wages Expense and Employet Benefits Expense both increase H. Cash, CPP Payable, El Payable, and EIT Payable all decrease, and Wages Expense increases Enter the letter that corresponds to your choice. (A B C D E F G H1) REQUIRED: Use an accounting chart to analyze the above transactions, and then answer the following questions. ENTRY RULES: Numeric answers must be entered with digits only - no dollar signs, commas, decimal points or pennies. How much interest does Santa pay on January 1 ? (2 marks) How much, in total, was the elves' gross pay on December 24 ? (2 marks) How much will Santa pay the elves on December 24 ? (2 marks) How does Santa record the interest accrual on December 31 ? (1 mark) A. increase both Bank Loan Payable and Bank Fees Expense B. increase both Bank Loan Payable and Interest Expense C. increase both interest Payable and interest Expense D. increase both Accounts Payable and Interest Expense E. increase both Accounts Payable and Bank Fees Expense F. increase both Interest Payable and Bank Fees Expense Enter the letter that corresponds to your choice. (A B C D E F)) How does Santa record the interest payment on January 1 ? (1 mark) A. decrease Interest Payable, Accounts Payable, and Cash B. decrease Accounts Payable, Bank Loan Payable, and Cash C. decrease both Bank Loan Payable and Cash D. decrease Interest Payable, Bank Loan Payable, and Cash E. decrease both Accounts Payable and Cash F. decrease both Interest Payable and Cash Enter the letter that corresponds to your choice. (A B C D EF) Which of the above items are events, not transactions, and require no entry? (1 mark) A. December 5,26 , and 28 B. December 5 and 26 only C. December 5,24 , and 26 D. December 5,24,26, and 28 E. December 24,26 , and 28 F. All of the items are transactions which require entries. Enter the letter that corresponds to your choice. (A B CD EF) A How does Santa record the December 28 transaction? (1 mark) A. increase both EIT Payable and Income Tax Expense B. increase both Income Tax Payable and EIT Expense C. increase both EIT Payable and EIT Expense D. increase both Income Tax Payable and Income Tax Expense E. increase Income Tax Expense and decrease Cash F. increase EIT Expense and decrease Cash Enter the letter that corresponds to your choice. (A B C D E F) How much will Santa pay the elves on December 24 ? (2 marks) A How much does Santa pay to the Canada Revenue Agency on January 15, with respect to the elves' December payroll? (2 marks) A How does Santa record the December 1 transaction? (1 mark) A. increase both Cash and Accounts Payable B. increase both Cash and Owner's Equity C. increase both Cash and Interest Payable D. increase both Cash and Retained Earnings E. increase both Cash and Bank Loan Payable F. No entry is needed until the loan is paid. Enter the letter that corresponds to your choice. (A B C D E F) Which of the above items are events, not transactions, and require no entry? (1 mark) A. December 5,26 , and 28