Page 1 of 18
INTERMEDIATE ACCOUNTING II - D104 WGU |
{LATEST 2026/ 2027 UPDATE} COMPLETE
ACTUAL AND AUTHENTIC EXAM | BRAND NEW!
A company reported the following excerpts from its balance sheet:
Cash: $150,000
Short-term investments: $350,000
Accounts receivable (net): $200,000
Inventory: $300,000
Property, plant, and equipment (net): $500,000
Total current liabilities: $400,000
What is the company's current ratio?
1.25
1.75
2.50
3.75
2.50
,Page 2 of 18
A company has 10,000 shares of $6 par value common stock
outstanding. The market value of the stock is $10. What is the impact
of a 2-for-1 stock split?
Retained earnings is reduced by $100,000.
Par value of the stock is is reduced to $3 per share.
The number of shares of stock outstanding is reduced to 5,000.
Paid-in Capital in Excess of Par Value - Common Stock is reduced by
$30,000.
Par value of the stock is is reduced to $3 per share.
On February 1, a company borrowed $24,600 from a bank. The terms
of the loan require five equal annual installments beginning January
31. The company has a calendar year-end. Which entry should the
company use to record the loan?
Debit cash $24,600, credit current maturities of long-term debt
$4,920, credit note payable $19,680
Debit cash $24,600, credit current maturities of long-term debt
$4,510, credit note payable $20,090
Debit note payable $20,090, debit current maturities of long-term
debt $4,510, credit cash $24,600
Debit note payable $19,680, debit current maturities of long-term
debit $4,920, credit cash $24,600
, Page 3 of 18
Debit cash $24,600, credit current maturities of long-term debt
$4,920, credit note payable $19,680
A company issues bonds at par with a 10-year term for $1,000,000 on
January 1 of Year 1. The bonds bear interest at an annual rate of 7%
payable semiannually on January 1 and July 1. Which journal entry
should be recorded on July 1 of Year 1?
Debit Interest Expense for $70,000; Credit Bonds Payable for $70,000
Debit Interest Expense for $70,000; Credit Cash for $70,000
Debit Interest Expense for $35,000; Credit Cash for $35,000
Debit Bonds Payable for $35,000: Credit Interest Expense for $35,000
Debit Interest Expense for $35,000; Credit Cash for $35,000
On July 22, a company issues bonds at 105, bonds with a par value of
$1,000,000, due in 20 years. Five years after the issue date, the
company calls the entire issue at 101 and redeems it. At that time, the
unamortized premium balance is $37,500. What is the effect of this
transaction?
$27,500 gain
$27,500 loss
$10,000 gain
INTERMEDIATE ACCOUNTING II - D104 WGU |
{LATEST 2026/ 2027 UPDATE} COMPLETE
ACTUAL AND AUTHENTIC EXAM | BRAND NEW!
A company reported the following excerpts from its balance sheet:
Cash: $150,000
Short-term investments: $350,000
Accounts receivable (net): $200,000
Inventory: $300,000
Property, plant, and equipment (net): $500,000
Total current liabilities: $400,000
What is the company's current ratio?
1.25
1.75
2.50
3.75
2.50
,Page 2 of 18
A company has 10,000 shares of $6 par value common stock
outstanding. The market value of the stock is $10. What is the impact
of a 2-for-1 stock split?
Retained earnings is reduced by $100,000.
Par value of the stock is is reduced to $3 per share.
The number of shares of stock outstanding is reduced to 5,000.
Paid-in Capital in Excess of Par Value - Common Stock is reduced by
$30,000.
Par value of the stock is is reduced to $3 per share.
On February 1, a company borrowed $24,600 from a bank. The terms
of the loan require five equal annual installments beginning January
31. The company has a calendar year-end. Which entry should the
company use to record the loan?
Debit cash $24,600, credit current maturities of long-term debt
$4,920, credit note payable $19,680
Debit cash $24,600, credit current maturities of long-term debt
$4,510, credit note payable $20,090
Debit note payable $20,090, debit current maturities of long-term
debt $4,510, credit cash $24,600
Debit note payable $19,680, debit current maturities of long-term
debit $4,920, credit cash $24,600
, Page 3 of 18
Debit cash $24,600, credit current maturities of long-term debt
$4,920, credit note payable $19,680
A company issues bonds at par with a 10-year term for $1,000,000 on
January 1 of Year 1. The bonds bear interest at an annual rate of 7%
payable semiannually on January 1 and July 1. Which journal entry
should be recorded on July 1 of Year 1?
Debit Interest Expense for $70,000; Credit Bonds Payable for $70,000
Debit Interest Expense for $70,000; Credit Cash for $70,000
Debit Interest Expense for $35,000; Credit Cash for $35,000
Debit Bonds Payable for $35,000: Credit Interest Expense for $35,000
Debit Interest Expense for $35,000; Credit Cash for $35,000
On July 22, a company issues bonds at 105, bonds with a par value of
$1,000,000, due in 20 years. Five years after the issue date, the
company calls the entire issue at 101 and redeems it. At that time, the
unamortized premium balance is $37,500. What is the effect of this
transaction?
$27,500 gain
$27,500 loss
$10,000 gain
