You and several classmates are studying for the next accounting examination. They ask you to answer the following questions. 1. 2. 3. If cash is borrowed on a $57,600, 10-month, 10% note on August 1, how much interest expense would be incurred by December 31? The cash register total including sales taxes is $42,840, and the sales tax rate is 5%. What is the sales taxes payable? If $42,840 is collected in advance on November 1 for 8-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31? LA LA $

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 $57,600,10-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 $42,840, and the sales tax rate is 5%. What is the sales taxes payable? 3. If $42,840 is collected in advance on November 1 for 8 -month magazine subscriptions, what amount of subscription revenue should be recognized on December 31