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It's hard to see the transition from the first quota to the second, but I've noticed how it works. The first quota shows the cog's face on the same background that it was. After you reach that quota, the background turns a green color. This is the signal that you've finished the first quota. After you finish that one, it turns yellow, signifying that you have defeated all the cogs of that type.
It's especially hard to notice on the big cogs like Robber Baron. I think the first quota on him is 2, the second is 10. If you happen to defeat 2 of them at the same time, then it goes right into the second quota.
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