Problem 4-7 (Algo) 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, 2021 ($ in thousands): sales revenue, $16,300; cost of goods sold, $6,700; selling expenses, $1,350; general and administrative expenses, $850; interest revenue, $200; interest expense, $230. Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount. 1. Investments were sold during the year at a loss of $270. Schembri also had an unrealized gain of $380 for the year on investments in debt securities that qualify as components of comprehensive income.
Problem 4-7 (Algo) Income statement presentation; statement of comprehensive income; unusual items (LO4-1, 4-3, 4-4, 4-5, 4-6] The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2021 ($ in thousands): sales revenue, $16,300; cost of goods sold, $6,700; selling expenses, $1,350; general and administrative expenses, $850; interest revenue, $200; interest expense, $230. Income taxes have not yet been recorded. The company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount. 1. Investments were sold during the year at a loss of $270. Schembri also had an unrealized gain of $380 for the year on investments in debt securities that qualify as components of comprehensive income.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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I need help with requirement one and two. however, I am only allowed to upload two images per question.  even though I already turned us and I want to learn how to do the calculations correctly for the future. 
![Problem 4-7 (Algo) Income statement presentation; statement of comprehensive income; unusual items
[LO4-1, 4-3, 4-4, 4-5, 4-6]
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year
ended December 31, 2021 ($ in thousands): sales revenue, $16,300; cost of goods sold, $6,700; selling expenses, $1,350; general and
administrative expenses, $850; interest revenue, $200; interest expense, $23O. Income taxes have not yet been recorded. The
company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income
statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the
following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.
1. Investments were sold during the year at a loss of $270. Schembri als had an unrealized gain of $380 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 $1,700.
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 $540 in 2021 prior to the sale, and its assets were sold at a gain of
$1,500.
4. In 2021, the company's accountant discovered that depreciation expense in 2020 for the office building was understated by $250.
5. Negative foreign currency translation adjustment for the year totaled $300.
Required:
1. Prepare Schembri's single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share
disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares
were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare Schembri's sinale, continuous multiple-sten statement of comprehensive income for 2021. including earninas per](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3e1bfd6a-3cb6-4031-858f-4ba8da8545b1%2Fc307f3e3-458c-408f-8aef-394ce5a4ce36%2Fbjemyjf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Problem 4-7 (Algo) Income statement presentation; statement of comprehensive income; unusual items
[LO4-1, 4-3, 4-4, 4-5, 4-6]
The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year
ended December 31, 2021 ($ in thousands): sales revenue, $16,300; cost of goods sold, $6,700; selling expenses, $1,350; general and
administrative expenses, $850; interest revenue, $200; interest expense, $23O. Income taxes have not yet been recorded. The
company's income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company's income
statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the
following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.
1. Investments were sold during the year at a loss of $270. Schembri als had an unrealized gain of $380 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 $1,700.
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 $540 in 2021 prior to the sale, and its assets were sold at a gain of
$1,500.
4. In 2021, the company's accountant discovered that depreciation expense in 2020 for the office building was understated by $250.
5. Negative foreign currency translation adjustment for the year totaled $300.
Required:
1. Prepare Schembri's single, continuous multiple-step statement of comprehensive income for 2021, including earnings per share
disclosures. One million shares of common stock were outstanding at the beginning of the year and an additional 400,000 shares
were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021.
Complete this question by entering your answers in the tabs below.
Required 1
Required 2
Prepare Schembri's sinale, continuous multiple-sten statement of comprehensive income for 2021. including earninas per
Transcribed Image Text:ep Int x
O Question 1 - Chapter 4 Problen x
aheducation.com/ext/map/index.html?_con%3Dcon&external_browser%3D0&launchUrl=https%253A%252F%252FIms
roblems i
Submitted
General and administrative expenses
850
Restructuring costs
1,700
Total operating expenses
3,900
Operating income
2,800 X
Other income (expense):
Loss on sale of investments
2$
(270)
Interest expense
(230)
Interest revenue
200
Other income, net
(300)
Income from continuing operations before income taxes
2,500
Income tax expense
500
Income from continuing operations
2,000
Discontinued operations:
Income from operations of discontinued component
1,230 X
Income tax expense
(306) X
Income on discontinued operations
924
Net income
2,924
Other comprehensive income, net of tax:
Gain on debt securities
380 X
Loss on sale of investments
380
Comprehensive income
2$
3,304
Earnings per share:
Income from continuing operations
2$
4.97
Income on discontinued operations
0.87 X
Net income
5.23 X
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Exam 1 Prep 22...pptx
Expert Solution
Step 1
Comprehensive Income:
Comprehensive Income remembers all changes for value during a period with the exception of those subsequent from speculations by proprietors and appropriations to proprietors. Comprehensive Income incorporates customary pay and other thorough pay, which generally comprises of hidden additions or misfortunes.
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