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 inventory Beginning work in process inventory Beginning raw materials inventory 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 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 17,300 11,100 32,000 21,200 17,000 24,400 6,200 9,750 9,100 34,500 2,100 6,020 44,500 51,600 234,030 32,000 247,500 14,000 Pepper Company $ 18,100 23,250 10,650 23,800 41,000 16,500 21,800 7,400 17,500 4,800 57,500 7,720 2,650 52,000 50,800 337,510 16,200 130,825 24,200 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.

Answer 1

Income Statement
GARCON COMPANY
For The Year ended December 31 ,2017
Revenue
Gross Sales		234030
Less: Sales Returns and Allowances		0
Net Sales			234030
Cost of Goods Sold
Beginning Inventory		41000
Add:	Purchases	44500
	Repairs-Factory equipment	6020
	Factory Rent	32000
	Factory utilities	9750
	Factory supplies used	9100
	Direct Labor	21200
Inventory Available		163570
Less: Ending Inventory		47600
Cost of Goods Sold			115970
Gross Profit (Loss)				118060
Expenses
General & Administrative xepense		34500
Indirect Labor		2100
Selling expense		51600
Total Expenses			88200
Net Operating Income				29860

GARCON COMPANY
PARTIAL BALANCE SHEET
AS OF DECEMBER,31,2017
Current asset
Cash	32,000
Accounts Receivable	14,000
Inventory	47,600
	93,600

Income Statement
Pepper Company
For The Year ended December 31 ,2017
Revenue
Gross Sales		337510
Less: Sales Returns and Allowances		0
Net Sales			337510
Cost of Goods Sold
Beginning Inventory		52000
Add:	Purchases	52000
	Repairs-Factory equipment	2650
	Factory Rent	23800
	Factory utilities	17500
	Factory supplies used	4800
	Direct Labor	41000
Inventory Available		193750
Less: Ending Inventory		45700
Cost of Goods Sold			148050
Gross Profit (Loss)				189460
Expenses
General & Administrative xepense		57500
Indirect Labor		7720
Selling expense		50800
Total Expenses			116020
Net Operating Income				73440

PEPPER COMPANY
PARTIAL BALANCE SHEET
AS OF DECEMBER,31,2017
Current asset
Cash	16,200
Accounts Receivable	24,200
Inventory	45,700
	86,100