Do It! Review 10-1a

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 $68,400, 10-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 $46,200, and the sales tax rate is 5%. What is the sales taxes payable? $ 3. If $46,200 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?