Page 1 of 44
WGU D102 FINANCIAL ACCOUNTING PRE-
ASSESSMENT 2026 EXAM COMPLETE (64)
CURRENT TESTING QUESTIONS AND
DETAILED CORRECT
ANSWERS|GUARANTEED PASS.
FINANCIAL ACCOUNTING
Prepare for the WGU D102 Financial Accounting Pre-Assessment
Exam with this concise study resource covering accounting
principles, financial statements, journal entries, and transaction
analysis. It reinforces key financial accounting concepts aligned
with coursework at Western Governors University. Suitable for
students studying financial accounting.
What is needed in the journal entry to record these sales?
Debit to sales revenue for $20,000
Credit to cash for $20,000
Debit to cash for $21,600
Credit to sales revenue for $21,600 ✓ ✓ ...... ANSWER .......
Debit to cash for $21,600
, Page 2 of 44
How does a mortgage loan differ from an ordinary loan?
A mortgage loan is for a shorter period.
A mortgage loan is related to a specific asset.
A mortgage loan cannot be repaid early.
A mortgage loan has no interest. ✓ ✓ ...... ANSWER .......
A mortgage loan is related to a specific asset.
A company borrowed $10,000 in cash by signing a $10,000,
five-year note payable with a 10% annual interest rate.
What is needed in the journal entry to record this borrowing
of $10,000?
Debit to cash for $10,000
Credit to interest expense for $5,000
Debit to note payable for $10,000
Credit to cash for $15,000 ✓ ✓ ...... ANSWER ....... Debit
to cash for $10,000
, Page 3 of 44
A company has a long-term loan on which it is making
annual payments of $10,000. This year, the $10,000 payment
is composed of $8,000 in interest and $2,000 that goes
toward repaying the loan.
What is needed in the journal entry to record this $10,000
cash loan payment?
Credit to interest expense for $8,000
Debit to interest expense for $10,000
Debit to loan payable for $2,000
Credit to loan payable for $2,000 ✓ ✓ ...... ANSWER .......
Debit to loan payable for $2,000
A company has a five-year, $200,000 note payable on which
it has been making annual interest payments of $15,000.
This is the final year of the note, and the company has made
a $215,000 payment to pay this year's interest as well as to
repay the note itself.
What is needed in the journal entry to record this $215,000
cash payment?
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Debit to interest expense for $15,000
Debit to interest expense for $215,000
Credit to note payable for $200,000
Credit to interest expense for $15,000 ✓ ✓ ...... ANSWER
....... Debit to interest expense for $15,000
A company has issued 300,000 new shares to shareholders
in exchange for $5,000,000 cash. The shares are $1 par
common shares.
What is needed in the journal entry to record this issuance of
shares?
Debit to paid-in capital in excess of par for $5,000,000
Credit to paid-in capital in excess of par for $4,700,000
Credit to common stock, $1 par for $5,000,000
Debit to common stock, $1 par for $300,000 ✓ ✓ ......
ANSWER ....... Credit to paid-in capital in excess of par
for $4,700,000
WGU D102 FINANCIAL ACCOUNTING PRE-
ASSESSMENT 2026 EXAM COMPLETE (64)
CURRENT TESTING QUESTIONS AND
DETAILED CORRECT
ANSWERS|GUARANTEED PASS.
FINANCIAL ACCOUNTING
Prepare for the WGU D102 Financial Accounting Pre-Assessment
Exam with this concise study resource covering accounting
principles, financial statements, journal entries, and transaction
analysis. It reinforces key financial accounting concepts aligned
with coursework at Western Governors University. Suitable for
students studying financial accounting.
What is needed in the journal entry to record these sales?
Debit to sales revenue for $20,000
Credit to cash for $20,000
Debit to cash for $21,600
Credit to sales revenue for $21,600 ✓ ✓ ...... ANSWER .......
Debit to cash for $21,600
, Page 2 of 44
How does a mortgage loan differ from an ordinary loan?
A mortgage loan is for a shorter period.
A mortgage loan is related to a specific asset.
A mortgage loan cannot be repaid early.
A mortgage loan has no interest. ✓ ✓ ...... ANSWER .......
A mortgage loan is related to a specific asset.
A company borrowed $10,000 in cash by signing a $10,000,
five-year note payable with a 10% annual interest rate.
What is needed in the journal entry to record this borrowing
of $10,000?
Debit to cash for $10,000
Credit to interest expense for $5,000
Debit to note payable for $10,000
Credit to cash for $15,000 ✓ ✓ ...... ANSWER ....... Debit
to cash for $10,000
, Page 3 of 44
A company has a long-term loan on which it is making
annual payments of $10,000. This year, the $10,000 payment
is composed of $8,000 in interest and $2,000 that goes
toward repaying the loan.
What is needed in the journal entry to record this $10,000
cash loan payment?
Credit to interest expense for $8,000
Debit to interest expense for $10,000
Debit to loan payable for $2,000
Credit to loan payable for $2,000 ✓ ✓ ...... ANSWER .......
Debit to loan payable for $2,000
A company has a five-year, $200,000 note payable on which
it has been making annual interest payments of $15,000.
This is the final year of the note, and the company has made
a $215,000 payment to pay this year's interest as well as to
repay the note itself.
What is needed in the journal entry to record this $215,000
cash payment?
, Page 4 of 44
Debit to interest expense for $15,000
Debit to interest expense for $215,000
Credit to note payable for $200,000
Credit to interest expense for $15,000 ✓ ✓ ...... ANSWER
....... Debit to interest expense for $15,000
A company has issued 300,000 new shares to shareholders
in exchange for $5,000,000 cash. The shares are $1 par
common shares.
What is needed in the journal entry to record this issuance of
shares?
Debit to paid-in capital in excess of par for $5,000,000
Credit to paid-in capital in excess of par for $4,700,000
Credit to common stock, $1 par for $5,000,000
Debit to common stock, $1 par for $300,000 ✓ ✓ ......
ANSWER ....... Credit to paid-in capital in excess of par
for $4,700,000
