You and several classmates are studying for the next accounting examination. They ask you to answer the following questions:

1. If cash is borrowed on a \(\$ 60,000,9\)-month, \(10 \%\) note on August 1 , how much interest expense would be incurred by December 31?

2. The cash register total including sales taxes is \(\$ 42,000\), and the sales tax rate is \(5 \%\). What is the sales taxes payable?

3. If \(\$ 42,000\) is collected in advance on November 1 for 6 -month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?