a. 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 $70,000, 9-month, 6% 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 $45,000 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized by December 31?

b. During the month of February, Morrisey Corporation's employees earned wages of $74,000. With holdings related to these wages were $5,661 for Social Security (FICA), $7,100 for federal income tax, and $1,900 for state income tax. Costs incurred for unemployment taxes were $110 for federal and $160 for state. Prepare the February 28 journal entries for

(a) Salaries and wages expense and salaries and wages payable assuming that all February wages will be paid in March

(b) The company's payroll tax expense.