Question

 

The following data is provided for Garcon Company and Pepper Company.

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	13,600			$	18,100
Beginning work in process inventory			17,300				19,950
Beginning raw materials inventory (direct materials)			10,100				11,100
Rental cost on factory equipment			33,750				25,300
Direct labor			21,200				37,800
Ending finished goods inventory			19,100				15,900
Ending work in process inventory			22,900				19,000
Ending raw materials inventory			6,300				9,800
Factory utilities			13,950				15,500
Factory supplies used (indirect materials)			8,800				4,500
General and administrative expenses			26,500				59,500
Indirect labor			1,700				8,800
Repairs—Factory equipment			6,260				2,050
Raw materials purchases			45,500				59,500
Selling expenses			51,200				48,700
Sales			205,530				292,510
Cash			32,000				18,200
Factory equipment, net			277,500				178,825
Accounts receivable, net			15,600				22,450

Required:
1. Prepare income statements for both Garcon Company and Pepper Company.
2. Prepare the current assets section of the balance sheet for each company.

• Req 1 Garcon

Prepare the income statement for Garcon Company.

	GARCON COMPANY Income Statement For Year Ended December 31, 2019           0 Operating expenses               Income (loss) before tax $0

• Req 1 Pepper

Prepare the income statement for Pepper Company.

	PEPPER COMPANY Income Statement For Year Ended December 31, 2019           0 Operating expenses               Income (loss) before tax $0

• Req 2 Garcon

Prepare the current asset section of the balance sheet for Garcon Company.

	GARCON COMPANY Partial Balance Sheet As of December 31, 2019             Inventories:                                 0 Total current assets   $0

• Req 2 Pepper

Prepare the current asset section of the balance sheet for Pepper Company.

	PEPPER COMPANY Partial Balance Sheet As of December 31, 2019             Inventories:                                 0 Total current assets   $0

Answer 1

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