100% satisfaction guarantee Immediately available after payment Both online and in PDF No strings attached
logo-home
Financial Accounting - D102 WGU Exam/165 Q’s and A’s $12.49   Add to cart

Exam (elaborations)

Financial Accounting - D102 WGU Exam/165 Q’s and A’s

 10 views  0 purchase
  • Course
  • Financial Accounting - D102 WGU
  • Institution
  • Financial Accounting - D102 WGU

Financial Accounting - D102 WGU Exam/165 Q’s and A’s

Preview 2 out of 15  pages

  • October 9, 2024
  • 15
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Financial Accounting - D102 WGU
  • Financial Accounting - D102 WGU
avatar-seller
Nursephil2023
Financial Accounting - D102 WGU
Exam/165 Q’s and A’s
Account - -An accounting record in which the results of transactions are
accumulated; shows increases, decreases, and a balance

- Accounts Receivable - -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? - -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? - -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? - -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? - -Cost of goods sold

- Revenues: Credit or Debit on the book? - -Credits; they represent
increases of equity

- Expenses and Dividends: Credit or Debit on the books? - -Debits; they
represent decreases in equity

- Steps to closing Entries: - -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? - -Beginning retained
earnings + Net Income - Dividends

- Net Income - -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? - -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? - -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 benefits of buying summaries with Stuvia:

Guaranteed quality through customer reviews

Guaranteed quality through customer reviews

Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.

Quick and easy check-out

Quick and easy check-out

You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.

Focus on what matters

Focus on what matters

Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!

Frequently asked questions

What do I get when I buy this document?

You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.

Satisfaction guarantee: how does it work?

Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.

Who am I buying these notes from?

Stuvia is a marketplace, so you are not buying this document from us, but from seller Nursephil2023. Stuvia facilitates payment to the seller.

Will I be stuck with a subscription?

No, you only buy these notes for $12.49. You're not tied to anything after your purchase.

Can Stuvia be trusted?

4.6 stars on Google & Trustpilot (+1000 reviews)

84866 documents were sold in the last 30 days

Founded in 2010, the go-to place to buy study notes for 14 years now

Start selling
$12.49
  • (0)
  Add to cart