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Studying for the next accounting examination

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Reference no: EM131464448

You and several classmates are studying for the next accounting examination. They ask you to answer the following questions:

a. If cash is borrowed on a $61,200, 11-month, 10% note on August 1, how much interest expense would be incurred by December 31?

b. The cash register total including sales taxes is $42,315, and the sales tax rate is 5%. What is the sales taxes payable?

c. If $42,315 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?

Reference no: EM131464448

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