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 $66,000, 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 $40,950, and the sales tax rate is 5%. What is the sales taxes payable?
3.		If $40,950 is collected in advance on November 1 for 5-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?		________________