The following income statement items appeared on the adjusted tr

The following income statement items appeared on the adjusted trial balance of Schembri Manufacturing Corporation for the year ended December 31, 2011 ($ 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, $180. Income taxes have not yet been accrued. The company's income tax rate is 40% on all items of income or loss. These revenue and expense items appear in the company's income statement every year. The company's controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2011 ($ in 000s). All transactions are material in amount.
1. Investments were sold during the year at a loss of $220. Schembri also had unrealized gains of $320 for the year on investments accounted for as securities available for sale.
2. One of the company's factories was closed during the year. Restructuring costs incurred were $1,200.
3. An earthquake destroyed a warehouse causing $2,000 in damages. The event is considered to be unusual and infrequent.
4. 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 an operating loss of $560 in 2011 prior to the sale, and its assets were sold at a gain of $1,400.
5. In 2011, the company's accountant discovered that depreciation expense in 2010 for the office building was understated by $200.
6. Foreign currency translation losses for the year totaled $240.

Prepare Schembri's combined statement of income and comprehensive income for 2011, including basic 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, 2011.

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on...
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...


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