Question

Question 8 0.67/1 Your answer is partially correct. You and several classmates are studying for the next accounting examination. They ask you to answer the following questions If cash is borrowed on a $ 56,400, 9-month, 10% note on August 1, how much interest expense would be incurred by December 31? 2350 1. The cash register total including sales taxes is $ 44,625, and the sales tax rate is 5%. What is the sales taxes pavable 2. 3. If $44,625 is collected in advance on November 1 for 6-month magazine subscriptions, what amount of subscription revenue should be recognized on December 31? 14875

Answer 1

It seems like Question 1 and 3 are correct so I will provide solution for question 2 and 10

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Question 2

In question we are given total amount of cash register including sales tax.

To get sales tax amount we will take this amount as 105% and then we can get amount of sales tax that is 5%.

Total amount	$      44,625.00
Sales amount (44625/105 x 100)	$      42,500.00
Sales tax amount (44625/105 x 5)	$        2,125.00

Answer-- $2,125

Question 10

Answer—Greater

When bonds are issued at premium then it means bond is paying more interest than market.

This is why the bond offered is more valuable and hence gets more cash than face value.