WGU D104 Objective Assessment – Intermediate Accounting II Guide (Latest 2026/ 2027 Update) 100% Verified Questions & Answers | Grade A

WGU D104 Objective Assessment – Intermediate Accounting II Guide (Latest 2026/ 2027 Update) 100% Verified Questions & Answers | Grade A QUESTION Depletion base for natural resources Answer: (cost to acquire + cost to explore + cost to develop i.e. intangible costs + cost to restore). Tangible costs to extract resources depreciated separately. QUESTION Natural resources depletion rate Answer: (depletion base - salvage value) / total units to be recovered. QUESTION Natural resources depletion expense Answer: (depletion rate X units of usage) / extracted QUESTION Journal entry to record ore extracted Answer: Debit inventory (ore), credit mineral mine QUESTION Journal entry to record the ore sold Answer: Debit cost of goods sold, credit inventory (ore) QUESTION Journal entry to record depletion expense for mine Answer: Debit depletion expense, credit accumulated depletion QUESTION Types of current liabilities Answer: Accounts payable, notes payable, dividends payable, customer advances/deposits, unearned (deferred) revenues, sales tax payable, current maturities of long-term debt QUESTION Journal entry to record issuance of a note Answer: Debit cash, credit notes payable QUESTION Journal entry to record payment of the note at maturity Answer: Debit notes payable, debit interest expense, credit cash QUESTION Journal entry to record issuance of a zero interest bearing note Answer: Debit cash, debit discount on notes payable, credit notes payable QUESTION Journal entry to record payment of a zero interest bearing note at maturity Answer: Debit notes payable, credit cash QUESTION Journal entry to record sale of gift certificate booklet Answer: Debit cash, credit unearned gift card revenue QUESTION Journal entry to record redemption of gift cards Answer: debit unearned gift card revenue, credit sales revenue QUESTION Journal entry to record a sale with sales tax and a loss on sales tax Answer: Debit cash, debit loss on sales tax collection, credit sales revenue, credit sales tax payable QUESTION Journal entry to record payment to the sales tax agency Answer: Debit sales tax payable, credit cash QUESTION Journal entry to record a sale when sales tax is not segregated Answer: Debit cash, credit sales revenue QUESTION Journal entry to record payment to sales tax agency when sales tax is not segregated with a loss on sales tax Answer: Debit sales revenue, debit loss on sales tax collection, credit cash QUESTION Journal entry to record sale with segregated sales tax and a gain on sales tax Answer: Debit cash, credit gain on sales tax collection, credit sales revenue, credit sales tax payable QUESTION Journal entry to record payment to sale tax agency with sales tax segregated Answer: Debit sales tax payable, credit cash QUESTION Journal entry to record payment to sales tax agency if sales tax is not segregated and there is a gain on sales tax Answer: Debit sales revenue, credit gain on sales tax collection, credit cash QUESTION Journal entry to record accrued interest expense Answer: Debit interest expense, credit interest payable QUESTION Journal entry to record a long term loan with payment due during the current fiscal year Answer: Debit cash, credit current maturities of long term debt, credit note payable QUESTION Long term debt due on demand Answer: Considered a current liability or will be due on demand within a year. QUESTION Long term debt that matures within one year and is to be converted into stock should be reported as? Answer: Noncurrent and accompanied with a note explaining the method to be used in its liquidation. QUESTION Companies should accrue an estimated loss from a loss contingency by: