6. Exercise: What are the 4 Closing Entries for a company if at year-end accounts are: (8 Marks) Sales = 100,000 COGS = 50,000 Operating Expenses = 30,000 Drawings = 10,000 Sales Returns and Allowances = 5,000 Sales Discounts = 1,500

27. Exercise - An Accounts Receivable amount of $1,500 is 1 month late. Record (make an entry) the 1-month finance charge on the A/R balance if the rate is 18% per annum. (3 Marks)

67. Exercise: Converting Preferred Shares to Common Shares (4 Marks) The PS in Equity Section have a balance of $1,000,000 100,000 PS are issued. If you convert 1,000 PS to CS, what would the entry be? Show any calculations

44. Exercise - Disposals - Exchange of a Vehicle A truck which was purchased Jan 1, 2016 for $55,000 is exchanged on July 1, 2019 by a company with a Dec. 31 year-end. Depreciation is calculated using the SL method and the estimated useful life was 5 years. Salvage value is 5,000. The cash paid for the new truck was 8,000 which was the List Price less the Trade-in Allowance. The Fair Value of the old truck is $15,000. Answer the following. (9 Marks)

a) Record the entry to update the depreciation prior to the sale. (3 Marks)

b) What is the balance in the Accumulated Depreciation Account prior to the exchange? (1 Mark)

c) What is the entry for the exchange? (5 Marks)