The following income statement items appeared on the adjustedtrial balance of Schembri Manufacturing Corporation for the yearended December 31, 2018 ($ in 000s): sales revenue, $18,300; costof goods sold, $7,700; selling expenses, $1,450; general andadministrative expenses, $950; interest revenue, $230; interestexpense, $320. Income taxes have not yet been recorded. Thecompany’s income tax rate is 20% on all items of income or loss.These revenue and expense items appear in the company’s incomestatement every year. The company’s controller, however, has askedfor your help in determining the appropriate treatment of thefollowing nonrecurring transactions that also occurred during 2018($ in 000s). All transactions are material in amount.
- Investments were sold during the year at a loss of $370.Schembri also had unrealized gains of $470 for the year oninvestments.
- One of the company’s factories was closed during the year.Restructuring costs incurred were $1,800.
- During the year, Schembri completed the sale of one of itsoperating divisions that qualifies as a component of the entityaccording to GAAP. The division had incurred a loss from operationsof $710 in 2018 prior to the sale, and its assets were sold at again of $1,700.
- In 2018, the company’s accountant discovered that depreciationexpense in 2017 for the office building was understated by$350.
- Negative foreign currency translation adjustment for the yeartotaled $420.
Required:
1. Prepare Schembri’s single, continuousmultiple-step statement of comprehensive income for 2018, includingearnings per share disclosures. One million shares of common stockwere outstanding at the beginning of the year and an additional200,000 shares were issued on July 1, 2018.
2. Prepare a separate statement of comprehensiveincome for 2018.
