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[The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning

[The following information applies to the questions displayed below.] The following data is provided for Garcon Company and Pepper Company.

Garcon Company Pepper Company
Beginning finished goods inventory $ 13,800 $ 16,000
Beginning work in process inventory 17,300 23,400
Beginning raw materials inventory (direct materials) 8,100 10,500
Rental cost on factory equipment 28,750 24,250
Direct labor 21,000 36,200
Ending finished goods inventory 20,300 16,000
Ending work in process inventory 22,300 17,000
Ending raw materials inventory 6,600 9,400
Factory utilities 12,150 13,500
Factory supplies used (indirect materials) 10,600 3,700
General and administrative expenses 25,500 46,000
Indirect labor 1,450 9,640
RepairsFactory equipment 5,420 3,900
Raw materials purchases 38,000 57,000
Selling expenses 62,400 56,500
Sales 204,030 305,010
Cash 21,000 17,700
Factory equipment, net 227,500 121,825
Accounts receivable, net 13,600 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.

GARCON COMPANY
Income Statement
For Year Ended December 31, 2019
Operating expenses

Income (loss) before tax

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

GARCON COMPANY
Partial Balance Sheet
As of December 31, 2019
Inventories:
Total current assets

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

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