Question

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

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	12,600			$	17,500
Beginning work in process inventory			18,000				20,550
Beginning raw materials inventory (direct materials)			7,400				12,150
Rental cost on factory equipment			30,500				24,700
Direct labor			21,200				41,000
Ending finished goods inventory			17,150				14,100
Ending work in process inventory			25,900				20,200
Ending raw materials inventory			7,100				7,600
Factory utilities			13,050				15,000
Factory supplies used (indirect materials)			13,000				3,300
General and administrative expenses			30,000				48,500
Indirect labor			2,150				7,600
Repairs—Factory equipment			4,940				3,650
Raw materials purchases			44,500				52,000
Selling expenses			53,600				46,300
Sales			201,030				335,010
Cash			25,000				22,700
Factory equipment, net			237,500				151,825
Accounts receivable, net			13,600				19,700

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.

Complete this question by entering your answers in the tabs below.

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

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

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

	GARCON COMPANY Partial Balance Sheet As of December 31, 2019 Inventories:

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