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

GARCON COMPANY			PEPPER COMPANY
Income Statement			Income Statement
For Year Ended December 31 , 2017			For Year Ended December 31 , 2017
Revenue	234030			Revenue	337510
Total Net Revenue	234030			Total Net Revenue	337510
Cost of good sold	118070			Cost of good sold	155770
Gross Profit	115960			Gross Profit	181740
Operating Expenses				Operating Expenses
General and administrative expenses	34500			General and administrative expenses	57500
Selling expenses	51600			Selling expenses	50800
Total Operating Expenses	86100			Total Operating Expenses	108300
Income Before Tax	266000			Income Before Tax	384980
Notes to Accounts				Notes to Accounts
Cost of good sold			Cost of good sold
Beginning raw materials inventory	11100			Beginning raw materials inventory	10650
Beginning work in process inventory	17300			Beginning work in process inventory	23250
Beginning finished good inventory	12600			Beginning finished good inventory	18100
Purchase	44500			Purchase	52000
Direct Labor	21200			Direct Labor	41000
Factory supplies used	9100			Factory supplies used	4800
Factory Utilitieses	9750			Factory Utilitieses	17500
Indirect Labor	2100			Indirect Labor	7720
Repair - Factory equipment	6020			Repair - Factory equipment	2650
Rental cost on factory equipment	32000			Rental cost on factory equipment	23800
Ending raw materials inventory	-6200			Ending raw materials inventory	-7400
Ending work in process inventory	-24400			Ending work in process inventory	-21800
Ending finished good inventory	-17000			Ending finished good inventory	-16500
Cost of good sold	118070			Cost of good sold	155770
GARCON COMPANY			PEPPER COMPANY
Partial Balance Sheet			Partial Balance Sheet
As of December 31 , 2017			As of December 31 , 2017
Inventories	47600			Inventories	45700
Ending raw materials inventory      - 6200				Ending raw materials inventory      - 7400
Ending work in process inventory - 24400				Ending work in process inventory - 21800
Ending finished good inventory - 17000				Ending finished good inventory - 16500
Cash	32000			Cash	16200
Factory Equipment, Net	247500			Factory Equipment, Net	130825
Account Receivable, Net	14000			Account Receivable, Net	24200
Total Current Assets	341100			Total Current Assets	216925