Use the following information for the Exercises below.

Skip to question

[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		$	13,000			$	16,900
Beginning work in process inventory			15,000				21,000
Beginning raw materials inventory			7,400				9,450
Rental cost on factory equipment			33,250				26,200
Direct labor			23,400				39,800
Ending finished goods inventory			18,050				16,400
Ending work in process inventory			26,800				18,000
Ending raw materials inventory			7,600				9,000
Factory utilities			14,250				15,000
Factory supplies used			12,400				5,900
General and administrative expenses			25,000				43,000
Indirect labor			1,250				8,680
RepairsFactory equipment			6,860				3,850
Raw materials purchases			36,000				65,000
Selling expenses			58,000				53,800
Sales			210,030				297,510
Cash			22,000				21,200
Factory equipment, net			222,500				142,825
Accounts receivable, net			16,200				21,450

Exercise 18-9 Preparing financial statements for a manufacturer LO C4, P2

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 0 Operating expenses Income (loss) before tax $ 0 Req 1A Garcon Req 1A Pepper Req 1B 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 18 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