WGU D102\D196 PRE-ASSESSMENT EXAM 2026-2027\NEWEST
VERSION WITH COMPLETE QUESTIONS AND CORRECT ANSWERS
\LATEST UPDATE
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 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?
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 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 wellas to repay the
note itself.
What is needed in the journal entry to record this $215,000 cash
payment?
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
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
Credit to paid-in capital in excess of par for
$4,700,000
VERSION WITH COMPLETE QUESTIONS AND CORRECT ANSWERS
\LATEST UPDATE
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 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?
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 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 wellas to repay the
note itself.
What is needed in the journal entry to record this $215,000 cash
payment?
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
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
Credit to paid-in capital in excess of par for
$4,700,000
