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 $ 13,700 14,700 9,500 33,250 22,600 18,950 25,900 5,300 12,900 12,100 33,000 2,350 6,020 39,000 59,600 228,030 22,000 272,500 15,000 Pepper Company $ 16,450 19,950 12,900 23,950 44,200 16,600 22,000 9,800 17,250 4,900 47,500 9,760 2,300 57,500 52,900 335,010 17,700 136,825 24,200 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. Prepare the income statement for Garcon Company. GARCON COMPANY Income Statement For Year Ended December 31, 2019 Sales $ 228,030 0 x 228,030 Less: Cost of goods sold Gross profit Operating expenses General and administrative expenses 33,000 59,600 Selling expenses Income (loss) before tax $ 135,430 Prepare the income statement for Pepper Company. PEPPER COMPANY Income Statement For Year Ended December 31, 2019 Sales $ 335,010 Less: Cost of goods sold Gross profit 335,010 Operating expenses General and administrative expenses 47,500 Selling expenses 52,900 Income (loss) before tax $ 234,610 Prepare the current asset section of the balance sheet for Garcon Company. GARCON COMPANY Partial Balance Sheet As of December 31, 2019 Cash $ 22,000 15,000 Accounts receivable, net Inventories: $ Finished goods inventory Raw materials inventory Work in process inventory 18,950 5,300 25,900 50,150 Prepare the current asset section of the balance sheet for Pepper Company. PEPPER COMPANY Partial Balance Sheet As of December 31, 2019 Cash $ 17,700 24,200 Accounts receivable, net Inventories: Finished goods inventory Raw materials inventory Work in process inventory $ 16,600 9,800 22,000 48,400