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JKCPA, CPA
Category: Finance
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Experience:  Bachelors degree and CPA with Accounting experience.
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I need help ASAP! (1) ABC corp. uses the periodic inventory

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I need help ASAP!
(1) ABC corp. uses the periodic inventory system. During its first year of operation, ABC made the following purchases ( listed in chronological order of acquisition):
40 units at $100;
70 units at $80; and
170 units at $60
Sales for the year totaled $270 units, leaving 10 units on hand at the end of the year. What is the ending inventory using the average cost method (rounded)?
(2) You are reviewing the Dec 31, 2011 financial statement of ABC antique that is considering an initial offering of their share. The following items come to your attention:
(a) Include in long-term investments are 10yrs US treasury bonds that mature march 31, 2012. the bonds were purchased Nov 20, 2011.
(b) The property, plant, and quipment account is stated at cost, except that it includes a parcel of land purchased for investment purposes at a cost of $40,000. Because of rising land prices, The value of the land has been written up to $60,000. The company has an independent appraisal that attests to this amount.
(c) The accounts receivable account includes $20,000 due in 3yrs from offers and employees and a two-year, 8% note for $25,000 due from a customer. The loan anabled the customer to buy equipment needed to process materials purchased from ABC antique.
Please discuss how the above items should be classified and accounted for.
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