Page | 1
WGU D102 FINANCIAL ACCOUNTING
EXAM 2025\ 2026 BRAND NEW
QUESTIONS WITH ANSWERS| ACE YOUR
GRADES!
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.
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.
, Page | 2
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.
What is needed in the journal entry to record this $10,000 cash
loan payment? - correct answer -Debit to loan payable for $2,000
A company has a five-year, $200,000 note payable on which it
has been making annual interest payments of $15,000. This is the
final year of the note, and the company has made a $215,000
payment to pay this year's interest as well as to repay the note
itself.
What is needed in the journal entry to record this $215,000 cash
payment? - correct answer -Debit to interest expense for $15,000
A company has issued 300,000 new shares to shareholders in
exchange for $5,000,000 cash. The shares are $1 par common
shares.
WGU D102 FINANCIAL ACCOUNTING
EXAM 2025\ 2026 BRAND NEW
QUESTIONS WITH ANSWERS| ACE YOUR
GRADES!
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.
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.
, Page | 2
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.
What is needed in the journal entry to record this $10,000 cash
loan payment? - correct answer -Debit to loan payable for $2,000
A company has a five-year, $200,000 note payable on which it
has been making annual interest payments of $15,000. This is the
final year of the note, and the company has made a $215,000
payment to pay this year's interest as well as to repay the note
itself.
What is needed in the journal entry to record this $215,000 cash
payment? - correct answer -Debit to interest expense for $15,000
A company has issued 300,000 new shares to shareholders in
exchange for $5,000,000 cash. The shares are $1 par common
shares.
