Question

income statements and balance sheets for garcon co and pepper co.

Check my work 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 inventory 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 $ 12,600 15,500 7,300 32,250 23,800 21,200 25,300 7,800 12,000 9,700 24,000 2,250 6,260 46,500 64,400 219,030 29,000 277,500 15,400 Pepper Company $ 19,600 20,700 11,700 24,250 42,600 -14, 400 20,600 8,800 15, 750 3,700 52,000 9,940 3,650 67,500 54,700 340,010 24,700 139, 825 23,950 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. CP 5 < Prey 6 of 7 Next > !!!

Answer 1

Answer with working notes is given below

Garcon Company Income Statement For the year ended December 31, 2019 Amount $219,030 $113,860 As per working note below $105,170 Sales Less: Cost of Goods Sold Gross profit Less: Operating expenses General and Administrative expenses Selling expenses Income (loss) before tax $24,000 $88,400 $16,770 Pepper Company Income Statement For the year ended December 31, 2019 Amount $340,010 $175,590 As per working note below $164,420 Sales Less: Cost of Goods Sold Gross profit Less: Operating expenses General and Administrative expenses Selling expenses Income (loss) before tax $52,000 $54,700 $106,700 $57,720 Working note: Pepper Company $11,700 $67,500 $79,200 $8,800 $70,400 $42,600 $113,000 Schedule of Cost of Goods Manufactured Garcon Company Direct Material Opening inventory of Raw Material $7,300 Add: purchases $46,500 Total Raw Material Available $53,800 Less: Closing inventory of Raw Material $7,800 Raw material used in production $46,000 Direct Labor $23,800 Prime Cost $69,800 Rental cost on factory equipment $32,250 Factory utilities $12,000 Factory supplies (indirect material) $9,700 Indirect labor $2,250 Repairs factory equipment $6,260 $62,460 Total manufacturing cost $132,260 Add: Opening work in process inventory $15,500 $147,760 Less: Closing work in process inventory $25,300 Cost of Goods Manufactured $122,460 $24,250 $15,750 $3,700 $9,940 $3,650 $57,290 $170,290 $20,700 $190,990 $20,600 $170,390 Schedule of Cost of Goods Sold Garcon Company Pepper Company Opening Finished Goods inventory Add: Cost of Goods manufactured Cost of Goods available for sale Less: Closing Finished Goods inventory Cost of Goods sold $12,600 $122,460 $135,060 $21,2001 $113,860 $19,600 $170,390 $189,990 $14,400 $175,590 Current Assets section of Balance Sheet Garcon Company Partial Balance Sheet As of December 31, 2019 Cash Accounts Receivable Inventories Raw Materials Work in process Finished Goods Total Current Assets $29,000 $15,400 $7,800 $25,300 $21,200 $54,300 $98,700 Current Assets section of Balance Sheet Pepper Company Partial Balance Sheet As of December 31, 2019 Cash Accounts Receivable Inventories Raw Materials Work in process Finished Goods Total Current Assets ts $24,700 $23,950 $8,800 $20,600 $14,400 $43,800 $92,450