WGU D102 Financial Accounting Final OA
Actual Exam Test Bank 1 Newest 2026-2027 With
Complete 300 Questions And Correct Detailed
Answers| Brand New Version!
A company purchased a building with a market value of $100,000.
Instead of paying cash for the building, the company gave 5,000 shares
of its own stock to the building seller. The company’s stock has a market
value of $20 per share.
What is included in the journal entry necessary to record this
acquisition of a building in exchange for shares?
Debit to building for $5,000
Credit to retained earnings for $100,000
Credit to capital stock for $5,000
Debit to building for $100,000
1|Page
,Debit to building for $100,000
Building $100,000
Capital Stock $100,000
A company paid cash dividends of $3,000.
What is included in the journal entry necessary to record this payment
of cash dividends?
Debit to cash for $3,000
Debit to dividends (or retained earnings) for $3,000
Debit to operating expenses for $3,000
Debit to paid-in capital for $3,000
Debit to dividends (or retained earnings) for $3,000
2|Page
,Dividends (or retained earnings) 3,000
Cash 3,000
A company made a $1,000 cash payment on a loan. Of the $1,000 cash
paid, $300 was for interest expense and $700 was a payment to reduce
the loan balance.
What is included in the journal entry necessary to record this loan
payment?
Credit to interest expense for $300
Debit to cash for $1,000
Credit to loan payable for $700
Debit to interest expense for $300
Debit to interest expense for $300
3|Page
, Interest Expense 300
Loan Payable 700
Cash 1,000
What is accrual accounting?
- Recording the amount of revenues and the amount of expenses when
process cycles are complete
- Recording revenues and expenses when earned or incurred, not when
cash is received or paid
- Recording the amount of revenues and the amount of expenses when
budgets are approved and adopted
- Recording the amount of revenues and the amount of expenses when
cash is received or paid
Recording revenues and expenses when earned or incurred, not when
cash is received or paid
What name is given to a 12-month accounting period?
Accrual year
4|Page
Actual Exam Test Bank 1 Newest 2026-2027 With
Complete 300 Questions And Correct Detailed
Answers| Brand New Version!
A company purchased a building with a market value of $100,000.
Instead of paying cash for the building, the company gave 5,000 shares
of its own stock to the building seller. The company’s stock has a market
value of $20 per share.
What is included in the journal entry necessary to record this
acquisition of a building in exchange for shares?
Debit to building for $5,000
Credit to retained earnings for $100,000
Credit to capital stock for $5,000
Debit to building for $100,000
1|Page
,Debit to building for $100,000
Building $100,000
Capital Stock $100,000
A company paid cash dividends of $3,000.
What is included in the journal entry necessary to record this payment
of cash dividends?
Debit to cash for $3,000
Debit to dividends (or retained earnings) for $3,000
Debit to operating expenses for $3,000
Debit to paid-in capital for $3,000
Debit to dividends (or retained earnings) for $3,000
2|Page
,Dividends (or retained earnings) 3,000
Cash 3,000
A company made a $1,000 cash payment on a loan. Of the $1,000 cash
paid, $300 was for interest expense and $700 was a payment to reduce
the loan balance.
What is included in the journal entry necessary to record this loan
payment?
Credit to interest expense for $300
Debit to cash for $1,000
Credit to loan payable for $700
Debit to interest expense for $300
Debit to interest expense for $300
3|Page
, Interest Expense 300
Loan Payable 700
Cash 1,000
What is accrual accounting?
- Recording the amount of revenues and the amount of expenses when
process cycles are complete
- Recording revenues and expenses when earned or incurred, not when
cash is received or paid
- Recording the amount of revenues and the amount of expenses when
budgets are approved and adopted
- Recording the amount of revenues and the amount of expenses when
cash is received or paid
Recording revenues and expenses when earned or incurred, not when
cash is received or paid
What name is given to a 12-month accounting period?
Accrual year
4|Page
