WGU D102 STUDY GUIDE EXAM 3 NEWEST VERSION
WIH COMPLEE QUESTIONS AND CORRECT
DETAILEDC ANSWERS\VERIFIED 100% ALREADY
GRADED A+|| LATEST UPDATE
A company has issued 100,000 new shares to shareholders in
exchange for $2,000,000 cash. The shares are $5 par preferred shares.
What is included in the journal entry necessary to record this issuance
of shares?
ANSWERS: Credit to Preferred Stock, $5 par for $500,000
In order to compute the present value of a future amount, a person
needs to know the amount and the interest rate.
Which additional quantity does a person need to know in order to do
this computation?
ANSWERS: Length of time
,A company has a long-term loan on which it is making annual payments
of $30,000. This year, the $30,000 payment is composed of $5,000 in
interest and $25,000 that actually goes toward repaying the loan.
What is included in the journal entry necessary to record this $30,000
cash loan payment?
ANSWERS: Debit to Loan Payable for $25,000
The following are some data from a company's financial statements:
Accounts Payable, end of year400Dividends during the year50Retained
Earnings, beginning of year850Inventory, end of year500Net Income
during the year300Building, end of year1,700Capital Stock, end of
year450Loans Payable, end of year650Accounts Receivable, end of
year300Cash, end of year100
What is this company's ending Retained Earnings balance?
ANSWERS: 1,100
,On January 1, a company had these equity account balances:
Retained Earnings200Paid-In Capital 20
The following information relates to things that happened during the
year:
Shareholders invested an additional $50 cash in the business.
Net loss for the year was $40.
Dividends for the year were $10. (Note: It is unusual, but not impossible,
for a company to pay dividends even in a year in which it reports a net
loss instead of net income.)
What is this company's retained earnings at the end of the year?
ANSWERS: 150
On May 29, Whole Pine Inc. declared a dividend of $1.00 per share to be
paid on September 18 to shareholders of record on June 6. There are
100,000 shares outstanding.
What is included in the journal entry necessary to record the declaration
of the dividends on September 18?
ANSWERS: Credit to Dividends Payable for $100,000
, On September 1 of Year 1, a company paid $2,400 cash for insurance.
This $2,400 insurance payment covers the period from September 1 of
Year 1 to August 31 of Year 2. On September 1, the payment of the cash
was recorded as an asset, Prepaid Insurance.
Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 with respect to this Prepaid Insurance?
ANSWERS: Debit to Insurance Expense for $800
On January 1, a company had these assets, liabilities, and equity:
Cash$100Inventory140Accounts Payable70Paid-In Capital150Retained
Earnings20
During the year, the company entered into the following transactions:
Sold inventory costing $80 for a total of $170; cash of $30 was received,
and the remaining $140 was put on account
Paid cash for advertising of $25
Paid cash for electricity of $30
Paid cash dividends of $10
What is this company's total assets at the end of the year?
ANSWERS: $265
WIH COMPLEE QUESTIONS AND CORRECT
DETAILEDC ANSWERS\VERIFIED 100% ALREADY
GRADED A+|| LATEST UPDATE
A company has issued 100,000 new shares to shareholders in
exchange for $2,000,000 cash. The shares are $5 par preferred shares.
What is included in the journal entry necessary to record this issuance
of shares?
ANSWERS: Credit to Preferred Stock, $5 par for $500,000
In order to compute the present value of a future amount, a person
needs to know the amount and the interest rate.
Which additional quantity does a person need to know in order to do
this computation?
ANSWERS: Length of time
,A company has a long-term loan on which it is making annual payments
of $30,000. This year, the $30,000 payment is composed of $5,000 in
interest and $25,000 that actually goes toward repaying the loan.
What is included in the journal entry necessary to record this $30,000
cash loan payment?
ANSWERS: Debit to Loan Payable for $25,000
The following are some data from a company's financial statements:
Accounts Payable, end of year400Dividends during the year50Retained
Earnings, beginning of year850Inventory, end of year500Net Income
during the year300Building, end of year1,700Capital Stock, end of
year450Loans Payable, end of year650Accounts Receivable, end of
year300Cash, end of year100
What is this company's ending Retained Earnings balance?
ANSWERS: 1,100
,On January 1, a company had these equity account balances:
Retained Earnings200Paid-In Capital 20
The following information relates to things that happened during the
year:
Shareholders invested an additional $50 cash in the business.
Net loss for the year was $40.
Dividends for the year were $10. (Note: It is unusual, but not impossible,
for a company to pay dividends even in a year in which it reports a net
loss instead of net income.)
What is this company's retained earnings at the end of the year?
ANSWERS: 150
On May 29, Whole Pine Inc. declared a dividend of $1.00 per share to be
paid on September 18 to shareholders of record on June 6. There are
100,000 shares outstanding.
What is included in the journal entry necessary to record the declaration
of the dividends on September 18?
ANSWERS: Credit to Dividends Payable for $100,000
, On September 1 of Year 1, a company paid $2,400 cash for insurance.
This $2,400 insurance payment covers the period from September 1 of
Year 1 to August 31 of Year 2. On September 1, the payment of the cash
was recorded as an asset, Prepaid Insurance.
Which debit or credit is correctly included in the adjusting journal entry
necessary on December 31 with respect to this Prepaid Insurance?
ANSWERS: Debit to Insurance Expense for $800
On January 1, a company had these assets, liabilities, and equity:
Cash$100Inventory140Accounts Payable70Paid-In Capital150Retained
Earnings20
During the year, the company entered into the following transactions:
Sold inventory costing $80 for a total of $170; cash of $30 was received,
and the remaining $140 was put on account
Paid cash for advertising of $25
Paid cash for electricity of $30
Paid cash dividends of $10
What is this company's total assets at the end of the year?
ANSWERS: $265
