Bass Steel Provided the Following Partial-Trial Balance for the Current

question 63

Essay

Bass Steel provided the following partial-trial balance for the current year. Prepare a multi-step statement of comprehensive income for the year ended December 31. Bass Steel is subject to a 30% income tax rate.
Bass Steel Bass Steel
Partial Trial Balance (Selected Accounts)
For the Year Ended December 31
$\begin{array}{lcc} \begin{array}{l}\text { Accounts } \\\text { Sales }\end{array} & \text { Debit } & \begin{array}{l}\text { Credit } \\\$ 845,300\end{array} \\ \text { Dividend Income } & & 19,470 \\ \text { Interest Income } & & 25,420 \\ \begin{array}{l}\text { Gain on Disposal of Discontinued Operations } \\\text { Unrealized Gain on Available-for-Sale Debt }\end{array} & & 34,860 \\ \text { nvestments } & & 17,260 \\ \text { Loss on Disposal of Equipment } & \$ 9,650 & \\\text { Loss on Foreign Currency Translation } & 33,620 & \\ \text { Loss on Discontinued Operations } & 46,730 & \\ \text { Loss on Asset Impairment } & 16,060 & \\\text { Dividends } & 110,000 & \\ \text { Cost of Goods Sold } & 320,900 & \\ \text { Office Supplies Expense-General Expense } & 34,560 & \\ \text { Sales Salaries Expense } & 68,740 & \\ \text { Selling Expenses } & 11,210 & \\ \text { Accounting and Legal Fees - General Expense } & 12,400 & \\ \text { Advertising Expense } & 32,780 & \\ \text { Office Salaries Expense-General Expense } & 41,390 & \\ \text { epreciation Expense-General Expense } & 29,330 & \\ \text { erest Expense } & 7,570 & \\ \text { asury Shares Acquired } & 31,330 & \\\end{array}$

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Definitions:

Limited Liability

Limited liability is a form of legal protection for shareholders and owners that limits their loss to the amount invested in the company.

Transferability

Transferability is the ability of an asset to be transferred or moved from one party to another with ease.

Pre-tax Profit

Earnings of a business before any tax is applied; also known as gross profit or operating profit.

C Corporation

A legal structure for a corporation in which the owners are taxed separately from the entity, subject to corporate income tax.