D102 FINANCIAL ACCOUNTING
WGU EXAM QUESTIONS AND
ANSWERS (LATEST)
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? - ANSWERS-Debit to cash for $10,000
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? - ANSWERS-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? - ANSWERS-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? -
ANSWERS-Credit to paid-in capital in excess of par for $4,700,000
On March 23, a company declared a dividend of $3.00 per share to be
paid on July 12 to shareholders of record on June 6. There are 20,000
shares outstanding.
What is needed in the journal entry to record the declaration of the
dividends on March 23? - ANSWERS-Debit to dividends for $60,000
On March 23, a company declared a dividend of $3.00 per share to be
paid on July 12 to shareholders of record on June 6. There are 60,000
shares outstanding.
What is needed in the journal entry to record the payment of the
dividends on July 12? - ANSWERS-Debit to dividends payable for
$180,000
Where and when should an expense already paid in cash be reported
if it cannot be directly matched with an associated revenue? -
ANSWERS-In the income statement as an expense in the accounting
period in which it is incurred
Which one of these items is a nominal account? - ANSWERS-Sales
Revenue
Nominal accounts are Revenues, Expenses, and Dividends. Real
accounts are Asset, Liability, and Owners' Equity accounts.
WGU EXAM QUESTIONS AND
ANSWERS (LATEST)
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? - ANSWERS-Debit to cash for $10,000
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? - ANSWERS-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? - ANSWERS-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? -
ANSWERS-Credit to paid-in capital in excess of par for $4,700,000
On March 23, a company declared a dividend of $3.00 per share to be
paid on July 12 to shareholders of record on June 6. There are 20,000
shares outstanding.
What is needed in the journal entry to record the declaration of the
dividends on March 23? - ANSWERS-Debit to dividends for $60,000
On March 23, a company declared a dividend of $3.00 per share to be
paid on July 12 to shareholders of record on June 6. There are 60,000
shares outstanding.
What is needed in the journal entry to record the payment of the
dividends on July 12? - ANSWERS-Debit to dividends payable for
$180,000
Where and when should an expense already paid in cash be reported
if it cannot be directly matched with an associated revenue? -
ANSWERS-In the income statement as an expense in the accounting
period in which it is incurred
Which one of these items is a nominal account? - ANSWERS-Sales
Revenue
Nominal accounts are Revenues, Expenses, and Dividends. Real
accounts are Asset, Liability, and Owners' Equity accounts.
