D102 Financial Accounting WGU 2026 Exam Latest!!
LATEST VERSIONS 50 QUESTIONS AND
CORRECT VERIFIED ANSWERS WITH
RATIONALES (100% CORRECT) A+ GRADED
ASSURED
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? - CORRECT
ANSWER: Debit to cash for $10,000
A company ended July with assets of $150,000 and owner's equity of $60,000.
What is the amount of liabilities at the end of July? - CORRECT ANSWER: $90,000
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? - CORRECT
ANSWER: Debit to interest expense for $15,000
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? - CORRECT
ANSWER: Debit to loan payable for $2,000
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? - CORRECT ANSWER:
Credit to paid-in capital in excess of par for $4,700,000
A company made retail sales of $20,000 to its customers. The sales tax rate is 8.0%. All sales are
cash sales.
What is needed in the journal entry to record these sales? - CORRECT ANSWER: Debit to cash
for $21,600
A company purchased a patent from another company for $5,000 cash.
What is needed in the journal entry to record this patent purchase? - CORRECT ANSWER:
Debit to patent for $5,000
A company purchased inventory for $5,000. The company paid $1,000 cash and the remainder of
the purchase was made on account.
What is included in the journal entry necessary to record this inventory purchase? - CORRECT
ANSWER: Credit to accounts payable for $4,000.
A company rents a building that it uses in its operations. The accountant for the company
mistakenly input a $1,000 rental payment on the building as $10,000 in the accounting records.
What is the impact of this error on the financial statements? - CORRECT ANSWER: Expenses
are too high, so reported net income is too low.
A company sold inventory that cost $1,300 for $2,000. It received $500 cash and the remainder
was on account.
What is included in the journal entry or entries necessary to record this sale of inventory? -
CORRECT ANSWER: Debit to accounts receivable for $1,500.
A company's controller estimated bad debt expense using the percentage of accounts receivable
method. Total sales for the year were $1,500,000. The ending balance in accounts receivable was
$300,000. An examination of the outstanding accounts at the end of the year indicates that
approximately 7% of these accounts will ultimately prove to be uncollectible. Before any
LATEST VERSIONS 50 QUESTIONS AND
CORRECT VERIFIED ANSWERS WITH
RATIONALES (100% CORRECT) A+ GRADED
ASSURED
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? - CORRECT
ANSWER: Debit to cash for $10,000
A company ended July with assets of $150,000 and owner's equity of $60,000.
What is the amount of liabilities at the end of July? - CORRECT ANSWER: $90,000
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? - CORRECT
ANSWER: Debit to interest expense for $15,000
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? - CORRECT
ANSWER: Debit to loan payable for $2,000
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? - CORRECT ANSWER:
Credit to paid-in capital in excess of par for $4,700,000
A company made retail sales of $20,000 to its customers. The sales tax rate is 8.0%. All sales are
cash sales.
What is needed in the journal entry to record these sales? - CORRECT ANSWER: Debit to cash
for $21,600
A company purchased a patent from another company for $5,000 cash.
What is needed in the journal entry to record this patent purchase? - CORRECT ANSWER:
Debit to patent for $5,000
A company purchased inventory for $5,000. The company paid $1,000 cash and the remainder of
the purchase was made on account.
What is included in the journal entry necessary to record this inventory purchase? - CORRECT
ANSWER: Credit to accounts payable for $4,000.
A company rents a building that it uses in its operations. The accountant for the company
mistakenly input a $1,000 rental payment on the building as $10,000 in the accounting records.
What is the impact of this error on the financial statements? - CORRECT ANSWER: Expenses
are too high, so reported net income is too low.
A company sold inventory that cost $1,300 for $2,000. It received $500 cash and the remainder
was on account.
What is included in the journal entry or entries necessary to record this sale of inventory? -
CORRECT ANSWER: Debit to accounts receivable for $1,500.
A company's controller estimated bad debt expense using the percentage of accounts receivable
method. Total sales for the year were $1,500,000. The ending balance in accounts receivable was
$300,000. An examination of the outstanding accounts at the end of the year indicates that
approximately 7% of these accounts will ultimately prove to be uncollectible. Before any
