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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
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? | ________________ |
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