Page | 1
WGU D102 PRE-ASSESSMENT EXAM
2025/2026 BRAND NEW QUESTIONS WITH
ANSWERS| ACE YOUR GRADES!
On January 1 of Year 1, a company purchased a patent for
$400,000. The patent had an original legal life of 20 years, but
only eight years remained on the date the patent was purchased.
The patent is expected to have continuing economic value during
this eight years. The patent is assumed to have zero salvage
value at the end of its economic useful life. The company uses
straight-line amortization.
What is the book value of this patent at the end of Year 3? -
correct answer -$250,000
How does a company report an externally purchased trademark in
its financial statements? - correct answer -As an asset in the
balance sheet
A company purchased a patent from another company for $5,000
cash.
What is needed in the journal entry to record this patent
purchase? - correct answer -Debit to patent for $5,000
, Page | 2
On January 1 of Year 1, a company purchased a franchise for
$100,000. The franchise is expected to have a 20-year economic
useful life. The franchise is assumed to have zero salvage value
at the end of its economic useful life. The company uses straight-
line amortization.
What is needed in the journal entry to record amortization
expense on this franchise at the end of Year 1? - correct answer -
Credit to franchise for $5,000
The following are payroll data for the employees of a company:
Salaries Withholding Taxes Payable $20,000
Salaries Payable 400,000
Federal Withholding Taxes Payable 48,000
FICA Taxes Payable, Employees 26,000
What is needed in the journal entry to record the given employee
payroll data? - correct answer -Credit to federal withholding taxes
payable for $48,000
William is an employee of a company and earns a salary of $300
per day. In addition, for every 10 days that he works, William
earns the right to take a paid sick day at some point in the future.
Ignore any payroll taxes and assume that William's salary has not
yet been paid in cash.
, Page | 3
What is needed in the journal entry to record William's salary for
the most recent pay period, which involved 20 working days? -
correct answer -Debit to salaries expense for $6,600
A company made retail sales of $20,000 to its customers. The
sales tax rate is 8.0%. All sales are cash sales.
What is needed in the journal entry to record these sales? -
correct answer -Debit to cash for $21,600
How does a mortgage loan differ from an ordinary loan? - correct
answer -A mortgage loan is related to a specific asset.
A company borrowed $10,000 in cash by signing a $10,000, five-
year note payable with a 10% annual interest rate.
What is needed in the journal entry to record this borrowing of
$10,000? - correct answer -Debit to cash for $10,000
A company has a long-term loan on which it is making annual
payments of $10,000. This year, the $10,000 payment is
composed of $8,000 in interest and $2,000 that goes toward
repaying the loan.
WGU D102 PRE-ASSESSMENT EXAM
2025/2026 BRAND NEW QUESTIONS WITH
ANSWERS| ACE YOUR GRADES!
On January 1 of Year 1, a company purchased a patent for
$400,000. The patent had an original legal life of 20 years, but
only eight years remained on the date the patent was purchased.
The patent is expected to have continuing economic value during
this eight years. The patent is assumed to have zero salvage
value at the end of its economic useful life. The company uses
straight-line amortization.
What is the book value of this patent at the end of Year 3? -
correct answer -$250,000
How does a company report an externally purchased trademark in
its financial statements? - correct answer -As an asset in the
balance sheet
A company purchased a patent from another company for $5,000
cash.
What is needed in the journal entry to record this patent
purchase? - correct answer -Debit to patent for $5,000
, Page | 2
On January 1 of Year 1, a company purchased a franchise for
$100,000. The franchise is expected to have a 20-year economic
useful life. The franchise is assumed to have zero salvage value
at the end of its economic useful life. The company uses straight-
line amortization.
What is needed in the journal entry to record amortization
expense on this franchise at the end of Year 1? - correct answer -
Credit to franchise for $5,000
The following are payroll data for the employees of a company:
Salaries Withholding Taxes Payable $20,000
Salaries Payable 400,000
Federal Withholding Taxes Payable 48,000
FICA Taxes Payable, Employees 26,000
What is needed in the journal entry to record the given employee
payroll data? - correct answer -Credit to federal withholding taxes
payable for $48,000
William is an employee of a company and earns a salary of $300
per day. In addition, for every 10 days that he works, William
earns the right to take a paid sick day at some point in the future.
Ignore any payroll taxes and assume that William's salary has not
yet been paid in cash.
, Page | 3
What is needed in the journal entry to record William's salary for
the most recent pay period, which involved 20 working days? -
correct answer -Debit to salaries expense for $6,600
A company made retail sales of $20,000 to its customers. The
sales tax rate is 8.0%. All sales are cash sales.
What is needed in the journal entry to record these sales? -
correct answer -Debit to cash for $21,600
How does a mortgage loan differ from an ordinary loan? - correct
answer -A mortgage loan is related to a specific asset.
A company borrowed $10,000 in cash by signing a $10,000, five-
year note payable with a 10% annual interest rate.
What is needed in the journal entry to record this borrowing of
$10,000? - correct answer -Debit to cash for $10,000
A company has a long-term loan on which it is making annual
payments of $10,000. This year, the $10,000 payment is
composed of $8,000 in interest and $2,000 that goes toward
repaying the loan.
