Question

Required information [The following information applies to the questions displayed below. The following data is provided for Garcon Company and Pepper Company. Beginning finished goods invertory Beginning work in process inventory Beginning raw materials inventory (direct materials) Rental cost on factory equipment Direct labor Ending finished goods inventory Ending work in process inventory Ending raw materials inventory Factory utilities Factory supplies used indirect materials) General and administrative expenses Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash Factory equipment, net Accounts receivable, net Garcon Company $ 12,000 14, 500 7, 250 27,000 19,000 17, 650 22,000 5, 300 9,000 8, 200 21,000 1, 250 4, 780 33,000 50,000 195, 030 20,000 212, 500 13, 200 Pepper Company $ 16, 450 19,950 9,000 22, 750 35,000 13, 300 16,000 7,200 12, 000 3,200 43,000 7, 660 1,500 52, 000 46,000 290, 010 15, 700 115, 825 19, 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. Complete this question by entering your answers in the tabs below.

Answer 1

Garcon Company Income Statement For the Year Ended December 31, 2019 Sales $195,030 $ 91,030 $104,000 Cost of Goods sold Gross Profit Operating Expenses General and administrative expenses Selling expenses Total Operating expenses Income Before Tax S 21.000 $ 50,000 $ 71,000 $ 33,000 $ 20,000 $ 13,200 Garcon Company Partial Balance sheet As on December 31, 2019 Cash Accounts Receivables, net Inventories Ending Raw materials Inventory Ending Work in process Inventory Ending Finished Goods Inventory Total Current assets $ 5,300 $ 22.000 $ 17,650 $ 44,950 $ 78,150

$ 34,950 $ 19,000 Working Notes: Garcon Company Statement Of cost of Goods sold For the Year Ended December 31, 2019 Raw Materials: Beginning raw material Inventory $ 7.250 Raw Materials purchases $ 33,000 Cost of materials available for use $ 40,250 Less: Ending Raw Materials Inventory $ 5,300 Cost of raw materials used in production Direct labor Factory Overhead: Renatl Cost on factory equipment $ 27,000 Factory Utilities $ 9,000 Factory Supplies used $ 8,200 Indirect Labor $ 1.250 Repairs - Factory equipment S 4.780 Total Factory overhead Total Manufacturing costs incured during the year Add: Beginning Work in Process Inventory Total manufacturing costs in work in process inventory Less: Ending Work in process Inventory Cost of Goods Manufactured S 50.230 $104.180 S 14.500 $118.680 $ 22,000 $ 96,680

Add: Beginning Finished Goods Inventory Cost of Goods available for sale Less: Ending Finished Goods Inventory Cost of Goods Sold $ 12,000 $ 108,680 $ 17,650 S 91,030 Pepper Company Income Statement For the Year Ended December 31, 2019 Sales Cost of Goods sold Gross Profit Operating Expenses General and administrative expenses Selling expenses Total Operating expenses Income Before Tax $290.010 $143.010 $147,000 $ 43,000 $ 46,000 $ 89,000 $ 58,000

Pepper Company Partial Balance sheet As on December 31, 2019 Cash $ 15,700 $ 19,450 Accounts Receivables, net Inventories Ending Raw materials Inventory Ending Work in process Inventory Ending Finished Goods Inventory Total Current assets $ 7,200 S 16,000 $ 13,300 $ 36,500 $ 71,650 Working Notes: Pepper Company Statement Of cost of Goods sold For the Year Ended December 31, 2019 Raw Materials: Beginning raw material Inventory $ 9,000 Raw Materials purchases $ 52,000 Cost of materials available for use $ 61,000 Less: Ending Raw Materials Inventory $ 7,200 Cost of raw materials used in production Direct labor $ 53,800 $ 35,000

$ 22.750 S 12.000 $ 3.200 $ 7.660 $ 1,500 Factory Overhead: Renatl Cost on factory equipment Factory Utilities Factory Supplies used Indirect Labor Repairs - Factory equipment Total Factory overhead Total Manufacturing costs incured during the year Add: Beginning Work in Process Inventory Total manufacturing costs in work in process inventory Less: Ending Work in process Inventory Cost of Goods Manufactured Add: Beginning Finished Goods Inventory Cost of Goods available for sale Less: Ending Finished Goods Inventory Cost of Goods Sold $ 47.110 $135,910 S 19,950 $155,860 $ 16,000 $139,860 S 16,450 $156,310 $ 13,300 $143,010