You and several classmates are studying for the next accounting examination. They ask you to answer the following questions: $ If cash is borrowed on a $60,000, 9-month, 10% note on August 1, how much interest expense would be 1. incurred by December 31? The cash register total including sales taxes is $42,000, and the sales tax rate is 5%. What is the sales taxes 2. 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? $ $ State whether each of the following statements is true or false. 1. Convertible bonds are also known as callable bonds. 2. The market rate is the rate investors demand for loaning funds. 3. Semiannual interest payments on bonds are equal to the face value times the stated rate times 6/12. 4. The present value of a bond is the value at which it should sell in the market. On January 1, 2017, Ermler Company, a calendar year company, issued $2000000 of notes payable, of which $500000 is due on January 1 for each of the next four years. The proper balance sheet presentation on December 31, 2017, is: Current liabilities, $2000000 Current liabilities, $500000; Long-term Debt, $1500000 Long-term debt. $2000000 Current liabilities, $500000; Long-term Debt, $1000000