Problem 4 7 Income statement presentation statement of comprehensive income unusual items LO4 1, 4 3, 4 4, 4 5, 4 6 The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2018 ($ in 000s) sales revenue, $15,300 cost of goods sold, $6,200 selling expenses, $1,300 general and administrative expenses, $800 interest revenue, $85 interest expense, $180 Income taxes have not yet been recorded The companys income tax rate is 40 on all items of income or loss These revenue and expense items appear in the companys income statement every year The companys controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2018 ($ in 000s) All transactions are material in amount Investments were sold during the year at a loss of $220 Schembri also had unrealized gains of $320 for the year on investments One of the companys factories was closed during the year Restructuring costs incurred were $1,200 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 $560 in 2018 prior to the sale, and its assets were sold at a gain of $1,400 In 2018, the companys accountant discovered that depreciation expense in 2017 for the office building was understated by $200 Negative foreign currency translation adjustment for the year totaled $240 Required 1 Prepare Schembris single, continuous multiple step statement of comprehensive income for 2018, including earnings per share disclosures One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2018 2 Prepare a separate statement of comprehensive income for 2018 Prepare Schembri's single, continuous multiple step statement of comprehensive income for 2018, including earnings per share disclosures One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares were issued on July 1, 2018 (Amounts to be deducted should be indicated with a minus sign Enter your answers in thousands Round EPS answers to 2 decimal places ) Show less SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2018 ($ in 000s) Earnings per share Required 1 Required 2 Required 1 Required 2 Prepare a separate statement of comprehensive income for 2018 (Amounts to be deducted should be indicated with a minus sign Enter your answers in thousands ) SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2018 ($ in 000)

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Problem 4-7 Income statement presentation; statement of comprehensive income; unusual items [LO4-1, 4-3, 4-4, 4-5, 4-6] The following income statement items appeared on the adjusted

Problem 4-7 Income statement presentation; statement of comprehensive income; unusual items [LO4-1, 4-3, 4-4, 4-5, 4-6]

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2018 ($ in 000s): sales revenue, $15,300; cost of goods sold, $6,200; selling expenses, $1,300; general and administrative expenses, $800; interest revenue, $85; interest expense, $180. Income taxes have not yet been recorded. The companys income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the companys income statement every year. The companys controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2018 ($ in 000s). All transactions are material in amount.

Investments were sold during the year at a loss of $220. Schembri also had unrealized gains of $320 for the year on investments.
One of the companys factories was closed during the year. Restructuring costs incurred were $1,200.
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 $560 in 2018 prior to the sale, and its assets were sold at a gain of $1,400.
In 2018, the companys accountant discovered that depreciation expense in 2017 for the office building was understated by $200.
Negative foreign currency translation adjustment for the year totaled $240.

Required: 1. Prepare Schembris single, continuous multiple-step statement of comprehensive income for 2018, 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, 2018. 2. Prepare a separate statement of comprehensive income for 2018. image text in transcribed

Prepare Schembri's single, continuous multiple-step statement of comprehensive income for 2018, 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, 2018. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands. Round EPS answers to 2 decimal places.) Show less SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2018 ($ in 000s) Earnings per share: Required 1 Required 2 > Required 1 Required 2 Prepare a separate statement of comprehensive income for 2018. (Amounts to be deducted should be indicated with a minus sign. Enter your answers in thousands.) SCHEMBRI MANUFACTURING CORPORATION Statement of Comprehensive Income For the Year Ended December 31, 2018 ($ in 000)