The following data is provided for Garcon Company and Pepper Company.

	Garcon Company					Pepper Company
Beginning finished goods inventory		$	12,000			$	16,450
Beginning work in process inventory			14,500				19,950
Beginning raw materials inventory (direct materials)			7,250				9,000
Rental cost on factory equipment			27,000				22,750
Direct labor			19,000				35,000
Ending finished goods inventory			17,650				13,300
Ending work in process inventory			22,000				16,000
Ending raw materials inventory			5,300				7,200
Factory utilities			9,000				12,000
Factory supplies used (indirect materials)			8,200				3,200
General and administrative expenses			21,000				43,000
Indirect labor			1,250				7,660
RepairsFactory equipment			4,780				1,500
Raw materials purchases			33,000				52,000
Selling expenses			50,000				46,000
Sales			195,030				290,010
Cash			20,000				15,700
Factory equipment, net			212,500				115,825
Accounts receivable, net			13,200				19,450

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.

• Req 1 Garcon
• Req 1 Pepper
• Req 2 Garcon
• Req 2 Pepper

Prepare the income statement for Garcon Company.

GARCON COMPANY
Income Statement
For Year Ended December 31, 2019
Sales	$195,030
Less: Cost of Goods Sold
Gross profit
Operating expenses
General and administrative expenses
Selling expenses
Income (loss) before tax

PEPPER COMPANY
Income Statement
For Year Ended December 31, 2019
	0
Operating expenses
Income (loss) before tax	$0

GARCON COMPANY
Partial Balance Sheet
As of December 31, 2019
Inventories:
	not attempted	0
Total current assets		$0

PEPPER COMPANY
Partial Balance Sheet
As of December 31, 2019
Inventories:
		0
Total current assets		$0