Question

The following data is provided for Garcon Company and Pepper Company. Garcon Реpper Company $ 16,000 21,900 9,900 23,950 37,000 Company $ 12,600 Beginning finished goods inventory Beginning work in process inventory Beginning raw materials inventory Rental cost on factory equipment Direct labor 18,300 10,600 28,000 19,400 17,900 24,400 6,700 9,750 13,000 21,000 1,300 6,500 33,000 59,200 229,530 21,000 247,500 14,200 Ending finished goods inventory Ending work in process inventory Ending raw materials inventory Factory utilities Factory supplies used General and administrative expenses 14,100 20,200 9,400 13,000 4,100 45,500 8,380 3,150 62,500 57,700 310,010 Indirect labor Repairs-Factory equipment Raw materials purchases Selling expenses Sales Cash 16,700 148,825 21,200 Factory equipment, net Accounts receivable, net Required: 1-a. Prepare income statements for both Garcon Company and Pepper Company. 1-b. Prepare the current assets section of the balance sheet for each company. Complete this question by entering your answers in the tabs below. Req 1A Garcon Req 1A Pepper Req 1B Garcon Req 1B Pepper Prepare the income statement for Garcon Company. GARCON COMPANY Income Statement For Year Ended December 31, 2017 Operating expenses

Answer 1

1)

GARCON COMPANY
Income Statement
For Year Ended December 31, 2017
Sales	229,530.00
Less :Cost of Goods Sold	103,450.00
Gross Profit	126,080.00
Operating Expense
General and Administrative Expense	21,000.00
Selling Expense	59,200.00
Income (loss) before tax	45,880.00

PEPPER COMPANY
Income Statement
For Year Ended December 31, 2017
Sales	310,010.00
Less :Cost of Goods Sold	156,180.00
Gross Profit	153,830.00
Operating Expense
General and Administrative Expense	45,500.00
Selling Expense	57,700.00
Income (loss) before tax	50,630.00

1b)

GARCON COMPANY
Partial Balance Sheet
As of December 31,2017
Cash		21,000.00
Accounts Receivable, net		14,200.00
Inventories
Raw Material Inventory	6,700.00
Work in Process Inventory	24,400.00
Finished Goods Inventory	17,900.00
		49,000.00
Total Current Assets		84,200.00

PEPPER COMPANY
Partial Balance Sheet
As of December 31,2017
Cash		16,700.00
Accounts Receivable, net		21,200.00
Inventories
Raw Material Inventory	9,400.00
Work in Process Inventory	20,200.00
Finished Goods Inventory	14,100.00
		43,700.00
Total Current Assets		81,600.00