What amount of subscription revenue

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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 a $55,200, 9-month, 10% note on August 1, how much interest expense would be incurred by December 31?$

2. The cash register total including sales taxes is $45,990, and the sales tax rate is 5%. What is the sales taxes payable?$

3. If $45,990 is collected in advance on November 1 for 5-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31?$

Reference no: EM132203995

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