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, $15,700; cost of goods sold, $6,400; selling expenses, $1,320; general and administrative expenses, $820; interest revenue, $80; interest expense, $200. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount. Investments were sold during the year at a loss of $240. Schembri also had an unrealized gain of $360 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,400. 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 $580 in 2021 prior to the sale, and its assets were sold at a gain of $1,440. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $220. Negative foreign currency translation adjustment for the year totaled $260.

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.

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, $17,500; cost of goods sold, $7,300; selling expenses, $1,410; general and administrative expenses, $910; interest revenue, $160; interest expense, $290. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.

1. Investments were sold during the year at a loss of $330. Schembri also had an unrealized gain of $400 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 $1,400.
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 $1,600.
4. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $310.
5. Negative foreign currency translation adjustment for the year totaled $340.

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 800,000 shares were issued on July 1, 2021.
2. Prepare a separate statement of comprehensive income for 2021.

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, $18,100; cost of goods sold, $7,600; selling expenses, $1,440; general and administrative expenses, $940; interest revenue, $200; 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. Investments were sold during the year at a loss of $360. Schembri also had an unrealized gain of $500 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories was closed during the year. Restructuring costs incurred were $1,700. 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 $700 in 2021 prior to the sale, and its assets were sold at a gain of $1,680. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $340. Negative foreign currency translation adjustment for the year totaled $400. 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.

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, $19,100; cost of goods sold, $8,100; selling expenses, $1,490; general and administrative expenses, $990; interest revenue, $250; interest expense, $220. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount. Investments were sold during the year at a loss of $410. Schembri also had an unrealized gain of $520 for the year on investments in debt securities that qualify as components of comprehensive income. One of the company’s factories was closed during the year. Restructuring costs incurred were $2,200. 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 $700 in 2021 prior to the sale, and its assets were sold at a gain of $1,700. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $390. Negative foreign currency translation adjustment for the year totaled $440.

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 800,000 shares were issued on July 1, 2021.

2. Prepare a separate statement of comprehensive income for 2021.

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, $15,700; cost of goods sold, $6,400; selling expenses, $1,320; general and administrative expenses, $820; interest revenue, $80; interest expense, $200. Income taxes have not yet been recorded. The company’s income tax rate is 25% on all items of income or loss. These revenue and expense items appear in the company’s income statement every year. The company’s controller, however, has asked for your help in determining the appropriate treatment of the following nonrecurring transactions that also occurred during 2021 ($ in thousands). All transactions are material in amount.

1. Investments were sold during the year at a loss of $240. Schembri also had an unrealized gain of $360 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 $1,400.

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 $580 in 2021 prior to the sale, and its assets were sold at a gain of $1,440.

4. In 2021, the company’s accountant discovered that depreciation expense in 2020 for the office building was understated by $220.

5. Negative foreign currency translation adjustment for the year totaled $260.

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.

"Even if a firm may sell its product at a price less than the average total cost, it may not shut down its operation." Explain with reference to the shut-down point.

please write out answer versus charting it

FASB has not taken a position on the use of push-down accounting. Take a position on whether push-down accounting provides the most relevant information for both internal and external financial statement users. Provide support for your rationale.

1. Initial public offerings (IPOs) were covered in the chapter. Let’s take a closer look at the two actual issues. Go to www.hoovers.com/global/ipoc/index.xhtml. (of the website does not work please use any website to complete the task) For the first two issues under “Latest Pricings,” do the following steps all the way through, one company at a time. Use the menu in the top left margin to navigate the IPO.

a.) Click on and write down the company name.

b.) Write a short paragraph about what the company des or its problem.

c.) Scroll down and record the date the company went public.

d.) Write down the actual offer price

e.) Write down the offerings amount (mil)

f.) Record the name of the lead underwriter.

Jones Inc. issues $5,000,000 of 5% bonds that pay interest semiannually and mature in 10 years. Compute the bonds’ issue price and write down the corresponding journal entries assuming that the bonds’ effective interest rate is:

1) 4% per year market rate semiannually and please tell whether the bond is issued at a premium or discount. Please write down the appropriate journal entries for this discount or premium.

2) 6% per year market rate semiannually and please tell whether the bond is issued at a premium or discount. Please write down the appropriate journal entries for this discount or premium.

3) With the 6% per year market rate semiannually, please write down the journal entries reflecting this amortization of the premium or discount at the end of the first year (2 payments).

2. During the Covid-19 outbreak, restaurants have been deciding between temporarily shutting down and staying open to serve meals to a small number of customers. A firm that shuts down decreases some but not all of its costs. What type of costs will a restaurant save by shutting down? What costs will it have to pay even if it is shut down? Fully explain your answer including an example of each type of cost.

3. “Unlike the bigger, well-capitalized car companies, the thousands of parts firms that feed

   the industry’s global supply chain operate closer to the edge with less of a cash cushion...”

Why are there only a small number of auto companies, but “thousands of auto parts firms?” Be thorough with your answer including relevant economic terminology and graphical analysis.