Question 1:Pillsbury Company?s record of transactions concerning the month of September were asfollows:Purchases Sales September (beginning inventory) 1 300@ $12.00 September 4 4003 200@ 12.10 17 60012 300@ 12.25 27 30016 300@ 12.30 30 20022 500@ 12.30 26 300@ 12.40 A. Compute the inventory at September 30 on each of the following bases. Assume thatthe company used the periodic method to report its inventory. Carry unit costs to thenearest cent.(1)First?in, first?out (FIFO).(2)Last?in, first?out (LIFO).(3)Average cost.B. Repeat your calculations in (1), (2), and (3) above, under the assumption that thecompany used the perpetual method to report its inventory. Carry average unit costs toat least two decimal places. 2 | PageQuestion 2:The following balances relate to Easter Company:Credit Sales during 2015 2,000,000Allowance for Bad Debt (1/1/15) 8,000 (credit)Accounts Receivable (1/1/15) 100,000Several transactions related to accounts receivable occurred during 2015.(1) An account with a balance of $600, previously written off, is collected during 2015.(2) Furthermore, $1,000 of the Easter?s accounts receivable are written off in 2015 asuncollectible.(3) At the end of the year, annual bad debts are estimated to be 3% of credit sales.What is the ending balance in accounts receivable and allowance for bad debts accounts atDecember 31, 2015 (after adjustment)? 3 | PageQuestion 3:Hammer Co. provided consulting services to Duder Inc. on December 31, 2013, but has decidedto allow Duder Inc. to pay the balance due over time. Hammer is considering several differentnote options below. The market rate of interest for a company of Duder?s risk level is 12%.A. For each option, determine the appropriate amount of service revenue that Hammer wouldrecord on December 31, 2013 and the amount of interest revenue Hammer would record forthe full year ended December 31, 2015. Use the Present Value tables provided in class, and donot round the factors. Round all answers to the nearest whole dollar (including interest andcash payments for each year in your calculation). Service Revenue at12/31/2013Interest Revenue forthe year ended12/31/2015Option 1: Hammer Co. will require Duder Inc.to pay a down payment of $13,600 on12/31/2013 and the remainder in the formof a $60,000, 8% note due in 5 years. Interestpayments will be due semi?annually. Option 2: Hammer Co. will provide theconsulting services in exchange for a 4?year,$102,000 non?interest bearing note. Interestcompounds annually. B. If Hammer Company opts for Option # 1 above, what is the total amount of interest revenueit will earn over the life of the note

Assignment 2 (Due 4/13/2016) Question 1: Pillsbury Company's record of transactions concerning the month of September were as follows: Sales Purchases September (beginning inventory) 1 300@ $12.00 September 4 400 3 200@ 12.10 17 600 12 300@ 12.25 27 300 16 300@ 12.30 30 200 22 500@ 12.30 26 300@ 12.40 A. Compute the inventory at September 30 on each of the following bases. Assume that the company used the periodic method to report its inventory. Carry unit costs to the nearest cent. (1) Firstin, firstout (FIFO). (2) Lastin, firstout (LIFO). (3) Average cost. B. Repeat your calculations in (1), (2), and (3) above, under the assumption that the company used the perpetual method to report its inventory. Carry average unit costs to at least two decimal places. 1 | P a g e Question 2: The following balances relate to Easter Company: Credit Sales during 2015 2,000,000 Allowance for Bad Debt (1/1/15) 8,000 (credit) Accounts Receivable (1/1/15) 100,000 Several transactions related to accounts receivable occurred during 2015. (1) An account with a balance of $600, previously written off, is collected during 2015. (2) Furthermore, $1,000 of the Easter's accounts receivable are written off in 2015 as uncollectible. (3) At the end of the year, annual bad debts are estimated to be 3% of credit sales. What is the ending balance in accounts receivable and allowance for bad debts accounts at December 31, 2015 (after adjustment)? 2 | P a g e Question 3: Hammer Co. provided consulting services to Duder Inc. on December 31, 2013, but has decided to allow Duder Inc. to pay the balance due over time. Hammer is considering several different note options below. The market rate of interest for a company of Duder's risk level is 12%. A. For each option, determine the appropriate amount of service revenue that Hammer would record on December 31, 2013 and the amount of interest revenue Hammer would record for the full year ended December 31, 2015. Use the Present Value tables provided in class, and do not round the factors. Round all answers to the nearest whole dollar (including interest and cash payments for each year in your calculation). Service Revenue at 12/31/2013 Interest Revenue for the year ended 12/31/2015 Option 1: Hammer Co. will require Duder Inc. to pay a down payment of $13,600 on 12/31/2013 and the remainder in the form of a $60,000, 8% note due in 5 years. Interest payments will be due semiannually. Option 2: Hammer Co. will provide the consulting services in exchange for a 4year, $102,000 noninterest bearing note. Interest compounds annually. B. If Hammer Company opts for Option # 1 above, what is the total amount of interest revenue it will earn over the life of the note (hint: use the shortcut discussed in class)? 3 | P a g e