Question

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 $ 13,600 16,000 11,500 34,250 24,600 19,480 22,600 6,200 11,700 9,700 32, see 1,650 7,220 43,000 54,800 240,830 21,000 247.500 14,600 $ 17,950 19,95€ 10,35e 22,75 37,400 14,400 18,400 9,600 15,250 5.500 51.000 9,880 2,900 66,500 53,200 337,510 24, 200 142,825 22,700 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. 2 < Prey 3 Next > of 7

Answer 1

1) A. Garcon Company Income Statement for the year ended Dec31,2019

$ 240030 117800 122230 Particulars Sales less Cost of Goods Sold Gross profit less Operating Expenses General and Administrative expenses Selling Expenses Repairs - Factory Equipments Income before Tax 32500 54800 7220 27710

Working Note :

Computation of Cost of Goods Sold 13600 16000 11500 41100 43000 34250 24600 Beginning Finished Goods Inventory Beginning work in progress inventory Beginning Raw Material Inventory Beginning Total Inventory Add Purchase of Raw Material Add rental cost of Factory Equipments Add Direct Labour Add Factory Utilities Add Factory Supplies Add Indirect Labour Total Less Ending Finished Goods Inventory less Ending work in progress inventory less Ending Raw Material Inventory 11700 9700 1650 166000 19400 22600 6200 Cost of Goods Sold 117800

B. Pepper Company Income Statement for the year ended Dec31,2019

$ 337510 163130 174380 Particulars Sales less Cost of Goods Sold Gross profit less Operating Expenses General and Administrative expenses Selling Expenses Repairs - Factory Equipments Income before Tax 51000 53200 2900 67280

Working Note :

Computation of Cost of Goods Sold 17950 19950 10350 48250 66500 22750 Beginning Finished Goods Inventory Beginning work in progress inventory Beginning Raw Material Inventory Beginning Total Inventory Add Purchase of Raw Material Add rental cost of Factory Equipments Add Direct Labour Add Factory Utilities Add Factory Supplies Add Indirect Labour Total Less Ending Finished Goods Inventory less Ending work in progress inventory less Ending Raw Material Inventory 37400 15250 5500 9880 205530 14400 18400 9600 Cost of Goods Sold 163130

2) A. Garcon Company Partial Balance Sheet as of Dec31,2019

14600 21000 Current Assets Accounts Receivables Cash Inventories Ending Finished Goods Inventory Ending work in progress inventory Ending Raw Material Inventory 19400 22600 6200 48200 Total Current Assets 83800

B. Pepper Company Partial Balance Sheet as of Dec31,2019

22700 24200 Current Assets Accounts Receivables Cash Inventories Ending Finished Goods Inventory Ending work in progress inventory Ending Raw Material Inventory 14400 18400 9600 42400 89300 Total Current Assets