Shawmut Metal Inc

question 65

Essay

Shawmut Metal Inc. provided the following partial trial balance for the current year. Prepare a multi-step statement of comprehensive income for the year ended December 31. Shawmut is subject to a 40 % income tax rate.
Shawmut Metal Inc.
Partial Trial Balance (Selected Accounts)
For the Year Ended December 31
$\begin{array}{lr}\text { Accounts } & \text { Debit } &\text { Credit }\\\text { Sales } && \$ 900,000 \\\text { Dividend Income } && 20,000 \\\text { Interest Income } && 1,000 \\\text { Gain on Disposal of Discontinued Operations } && 12,000 \\\text { Unrealized Gain on Available-for-Sale Debt } & \\\text { Investments } & &18,000\\\text { Loss on Disposal of Equipment } & \$ 12,000 \\\text { Loss on Foreign Currency Translation } & 28,000 \\\text { Loss on Discontinued Operations } & 47,000 \\\text { Loss on Asset Impairment } & 16,000 \\\text { Dividends } & 2000\\\text { Cost of Goods Sold } & 350,000 \\\text { Office Supplies Expense - General Expense } & 28,000 \\\text { Sales Salaries Expense } & 90,000 \\\text { Distribution Expenses } & 10,000 \\\text { Accounting and Legal Fees - General Expense } & 9,000\\\text { Advertising Expense } & 33,000 \\\text { Office Salaries Expense - General Expense } & 39,000 \\\text { Depreciation Expense-General Expense } & 31,000 \\\text { Interest Expense } & 6,000\end{array}$

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Definitions:

Inventory Cost

Inventory cost includes all costs associated with procuring, storing, and managing goods a business intends to sell.

Financing

The act of providing funds for business activities, making purchases or investing.

Shelf Life

The length of time for which an item remains usable, fit for consumption, or saleable.

Storage

The act of keeping or placing goods or data in a designated space for future use or retrieval.