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Income Statement and Retained Earnings

Preparation of Income Statement (What are the Net Income and Earning per Share?) and Retained Earnings Statement (What is the Retained earnings on June 30, 2006?). Prepare an income statement and a statement of retained earnings for Big Sky Corporation for the year ended June 30, 2006, based on the following information---see attached document.

I've attached my attempt to solve this problem, but noticed that my answer differs from a previously posted response on brain mass for this same equation. Can you please help me understand where/if I am messing up.

See attached excel file for my solution. The answer posted previously in brain mass did not include the dividends on the income statement, yet i saw another example elsewhere that did...should it be included? Are my calculations correct?

Do capital stock and retained earnings go on the income statement? If yes, how do I incorporate that?

Also, how/where do I calculate the earnings per share? Please review the work I've done and let me know where I am messing up.

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Solution Preview

See attached excel file for my solution. The answer posted previously in brain mass did not include the dividends on the income statement, yet i saw another example elsewhere that did...should it be included? Are my calculations correct?

Dividends is not to be included in the income statement, unless it ...

Solution Summary

The solution explains how to prepare an income statement and a statement of retained earnings

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