7

Labels

• Cash
• Direct labor
• Factory equipment, net
• Factory supplies used
• Factory utilities
• General and administrative expenses
• Indirect labor
• Raw materials purchases
• Rental cost on factory equipment
• RepairsFactory equipment
• Sales
• Selling expenses

.

• Add: Cost of goods sold
• Less: Cost of goods sold

lABELS FOR CURRENT ASSET SECTION

• Accounts receivable, net
• Cash
• Factory supplies
• Finished goods inventory
• Prepaid insurance
• Raw materials inventory
• Work in process inventory

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 $ 12,000 15,900 9,000 35,000 23,000 17,750 24,400 6,000 9,300 12,100 21,000 2,000 6,140 42,000 54,400 225,030 26,000 232,500 14,800 Pepper Company $ 16,750 22,350 14,400 25,000 40,200 14,900 19,400 9,000 12,250 3,300 49,000 9,340 1,550 63,000 48,100 332,510 17,200 154,825 21,950 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.. 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 Sales $ Add: Cost of goods sold 225,0301 225,030 Operating expenses Income (loss) before tax $ 225,030 Req 1A Garcon Req 1A Pepper Req 18 Garcon Req 1B Pepper Prepare the income statement for Pepper Company. PEPPER COMPANY Income Statement For Year Ended December 31, 2017 0 Operating expenses Income (loss) before tax $ 0 Req 1A Garcon Req 1A Pepper Req 1B Garcon Req 1B Pepper Prepare the current asset section of the balance sheet for Garcon Company. GARCON COMPANY Partial Balance Sheet As of December 31, 2017 Inventories: 0 Total current assets $ 0 Req 1A Garcon Req 1A Pepper Req 1B Garcon Req 1B Pepper Prepare the current asset section of the balance sheet for Pepper Company. PEPPER COMPANY Partial Balance Sheet As of December 31, 2017 Inventories: 0 Total current assets $ 0