Financial Accounting - D102 WGU || very Flawless.
Account correct answers An accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance
Accounts Receivable correct answers 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? correct answers 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? correct answers 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? correct answers 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?
correct answers Cost of goods sold
, Revenues: Credit or Debit on the book? correct answers Credits; they represent increases of
equity
Expenses and Dividends: Credit or Debit on the books? correct answers Debits; they represent
decreases in equity
Steps to closing Entries: correct answers 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? correct answers Beginning retained earnings +
Net Income - Dividends
Net Income correct answers 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? correct answers 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 year were $1,500,000. The ending balance in accounts receivable was
$300,000. An examination of the outstanding accounts at the end of the year indicates that
approximately 7% of these accounts will ultimately prove to be uncollectible. Before any
adjustment, the balance in the allowance for bad debts is $4,000 (credit). Total accounts written
off as uncollectible during the year were $15,000.
Which debit or credit is included in the adjusting entry to record bad debt expense for the year?
correct answers 1. Credit allowance for bad debts for $21,000
2. Debit allowance for bad debts for $25,000
3. Debit allowance for bad debts for $15,000
4. Credit allowance for bad debts for $17,000
Correct: 3
The following are payroll data for the employees of a company:
Salaries Withholding Taxes Payable$20,000
Salaries Payable400,000Federal Withholding Taxes Payable48,000
FICA Taxes Payable, Employees26,000
What is needed in the journal entry to record the given employee payroll data? correct answers 1.
Credit to state withholding taxes payable $48,000
Account correct answers An accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance
Accounts Receivable correct answers 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? correct answers 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? correct answers 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? correct answers 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?
correct answers Cost of goods sold
, Revenues: Credit or Debit on the book? correct answers Credits; they represent increases of
equity
Expenses and Dividends: Credit or Debit on the books? correct answers Debits; they represent
decreases in equity
Steps to closing Entries: correct answers 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? correct answers Beginning retained earnings +
Net Income - Dividends
Net Income correct answers 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? correct answers 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 year were $1,500,000. The ending balance in accounts receivable was
$300,000. An examination of the outstanding accounts at the end of the year indicates that
approximately 7% of these accounts will ultimately prove to be uncollectible. Before any
adjustment, the balance in the allowance for bad debts is $4,000 (credit). Total accounts written
off as uncollectible during the year were $15,000.
Which debit or credit is included in the adjusting entry to record bad debt expense for the year?
correct answers 1. Credit allowance for bad debts for $21,000
2. Debit allowance for bad debts for $25,000
3. Debit allowance for bad debts for $15,000
4. Credit allowance for bad debts for $17,000
Correct: 3
The following are payroll data for the employees of a company:
Salaries Withholding Taxes Payable$20,000
Salaries Payable400,000Federal Withholding Taxes Payable48,000
FICA Taxes Payable, Employees26,000
What is needed in the journal entry to record the given employee payroll data? correct answers 1.
Credit to state withholding taxes payable $48,000
