Financial Accounting - D102 WGU Question with correct
answers
Account - An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and
a balance
Accounts Receivable - A current asset representing
money due for services performed or merchandise sold on
credit
On August 1 of Year 1, a company paid $7,200 for two years'
rent. The rental period starts on August 1 of Year 1.
Which debit or credit is correctly included in the adjusting
journal entry necessary on December 31 of Year 1? - 1.
Credit to rent expense for $1,500.
2. Credit to prepaid rent for $5,100.
3. Debit to rent expense for $1,500.
4. Debit to rent expense for $5,100.
Correct: 3
,On October 1 of Year 1, a company made a $60,000 cash loan
to another company. The interest rate on the loan is 5%. No
cash payments will be collected on the loan until September 30
of Year 2.
Which debit or credit is correctly included in the adjusting
journal entry necessary on the company's books (the lender) on
December 31 with respect to this loan? - 1. Credit to
interest revenue for $750.
2. Debit to interest revenue for $2,250.
3. Credit to interest revenue for $2,250.
4. Debit to interest revenue for $750.
Correct: 2
On January 1, a company had office supplies costing $4,600.
During the year, the company bought (and recorded) additional
office supplies costing $9,900. On December 31, a physical
count of office supplies revealed that supplies costing $2,900
remained.
Which debit or credit is correctly included in the adjusting
journal entry necessary on December 31 to record the supplies
,that the company used during the year? - 1. Credit to
office supplies expense for $11,600.
2. Debit to office supplies for $11,600.
3. Credit to office supplies for $11,600.
4. Debit to cash for $11,600.
Correct: 3
At the end of the year, before any closing entries are made,
which account has a debit balance? - Cost of goods sold
Revenues: Credit or Debit on the book? - Credits; they
represent increases of equity
Expenses and Dividends: Credit or Debit on the books? -
Debits; they represent decreases in equity
Steps to closing Entries: - 1. Separate Nominal accounts
from real accounts
2. Debit or credit each nominal account to make the balance =
0
, 3. Corresponding debit or credit to Retained Earnings
How is the ending retained earnings calculated? -
Beginning retained earnings + Net Income - Dividends
Net Income - the difference between total revenue and
total expenses
On January 6, a credit sale was made for $1,000. Terms for the
sale were 4/10, n/30. Cash for the sale was collected on January
25.
Which debit or credit should be included in the journal entry to
record the cash collection on January 25? - 1. Debit
accounts receivable for $1,000
2. Debit sales discounts for $960
3. Debit cash for $1,000
4. Debit sales discounts for $40
Correct: 2
A company's controller estimated bad debt expense using the
percentage of accounts receivable method. Total sales for the
answers
Account - An accounting record in which the results of
transactions are accumulated; shows increases, decreases, and
a balance
Accounts Receivable - A current asset representing
money due for services performed or merchandise sold on
credit
On August 1 of Year 1, a company paid $7,200 for two years'
rent. The rental period starts on August 1 of Year 1.
Which debit or credit is correctly included in the adjusting
journal entry necessary on December 31 of Year 1? - 1.
Credit to rent expense for $1,500.
2. Credit to prepaid rent for $5,100.
3. Debit to rent expense for $1,500.
4. Debit to rent expense for $5,100.
Correct: 3
,On October 1 of Year 1, a company made a $60,000 cash loan
to another company. The interest rate on the loan is 5%. No
cash payments will be collected on the loan until September 30
of Year 2.
Which debit or credit is correctly included in the adjusting
journal entry necessary on the company's books (the lender) on
December 31 with respect to this loan? - 1. Credit to
interest revenue for $750.
2. Debit to interest revenue for $2,250.
3. Credit to interest revenue for $2,250.
4. Debit to interest revenue for $750.
Correct: 2
On January 1, a company had office supplies costing $4,600.
During the year, the company bought (and recorded) additional
office supplies costing $9,900. On December 31, a physical
count of office supplies revealed that supplies costing $2,900
remained.
Which debit or credit is correctly included in the adjusting
journal entry necessary on December 31 to record the supplies
,that the company used during the year? - 1. Credit to
office supplies expense for $11,600.
2. Debit to office supplies for $11,600.
3. Credit to office supplies for $11,600.
4. Debit to cash for $11,600.
Correct: 3
At the end of the year, before any closing entries are made,
which account has a debit balance? - Cost of goods sold
Revenues: Credit or Debit on the book? - Credits; they
represent increases of equity
Expenses and Dividends: Credit or Debit on the books? -
Debits; they represent decreases in equity
Steps to closing Entries: - 1. Separate Nominal accounts
from real accounts
2. Debit or credit each nominal account to make the balance =
0
, 3. Corresponding debit or credit to Retained Earnings
How is the ending retained earnings calculated? -
Beginning retained earnings + Net Income - Dividends
Net Income - the difference between total revenue and
total expenses
On January 6, a credit sale was made for $1,000. Terms for the
sale were 4/10, n/30. Cash for the sale was collected on January
25.
Which debit or credit should be included in the journal entry to
record the cash collection on January 25? - 1. Debit
accounts receivable for $1,000
2. Debit sales discounts for $960
3. Debit cash for $1,000
4. Debit sales discounts for $40
Correct: 2
A company's controller estimated bad debt expense using the
percentage of accounts receivable method. Total sales for the
