Question

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021($ in thousands): sales revenue. $18.700: cost of goods sold. $7,900; selling expenses. $1,470; general and administrative expenses. $970: Interest revenue, $250; interest expense, $300. Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021($ in thousands). All transactions are material in amount. 1. Investments were sold during the year at a loss of $390. Schembri also had an unrealized gain of $500 for the year on investments in debt securities that qualify as components of comprehensive income. 2. One of the company's factories was closed during the year. Restructuring costs incurred were $2,000, 3. During the year, Schembri completed the sale of one of its operating divisions that qualifies as a component of the entity according to GAAP. The division had incurred a loss from operations of $720 in 2021 prior to the sale, and its assets were sold at a gain of $1.740 4. In 2021, the company's accountant discovered that depreciation expense in 2020 for the office building was understated by $370. 5. Negative foreign currency translation adjustment for the year totaled $400. Required: 1. Prepare Schembri's single, contin multiple step statement of comprehensive income 2021, including earnings per share disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400.000 shares were issued on July 1, 2021. 2. Prepare a separate statement of comprehensive income for 2021. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Prepare Schembri's single, continuous multiple step statement of comprehensive income for 2021, including earnings per - nowina Anden hann

Answer 1

Please hit LIKE button if this helped. $ 18,700 $ -7,900 $ 10,800 $ $ $ 1,470 970 2,000 $ -4,440 $ 6,360 $ $ $ -390 -300 250 Requirement 1 ($ in 000s) Sales revenue Cost of goods sold Gross profit Operating expenses: Selling General and administrative Restructuring costs Total operating expenses Operating income Other income (expense): Loss on sales of investments Interest expense Interest revenue Other income (expense) Income from continuing operations before income taxes Income tax expense (25%) Income from continuing operations Discontinued operations: Income from operations of discontinued component (including gain on disposal of $1,740) Income tax expense Income on discontinued operations Net income Other comprehensive income: Unrealized gains from investments, net of tax Loss from foreign currency translation, net of tax Total other comprehensive income Comprehensive income $ -440 $ 5,920 $ -1,480 $ 4,440 $ $ 1,020 -255 $ 765 $ 5,205 $ $ 500 - 125 $ 375 $ 6,345 4.34 Earnings per share: Income from continuing operations $ 3.70 Discontinued operations $ 0.64 Net income $ *Weighted-average shares = 1,000,000 + (400,000:2) 1,200,000 The depreciation expense error is a prior period adjustment (to retained earnings) and is not reported in the in Requirement 2 ($ in 000s) Net income $ 5,205 Other comprehensive income (loss): Unrealized gains from investments, net of tax $ 500 Loss from foreign currency translation, net of tax $ -125 Total other comprehensive income $ 375 Comprehensive income $ 5,580