Brandi Gilbert, accountant for The Software Connection, Inc., was injured in a sailing accident. Another employee prepared the following income statement for the fiscal year ended June 30, 19X4:

The individual amounts listed on the income statement are correct. However, some accounts are reported incorrectly, and others do not belong on the income statement at all. Also, income tax (40 percent) has not been applied to all appropriate figures. The Software Connection, Inc., issued 24,000 shares of common stock in \(19 \mathrm{X} 1\) and held 4,000 shares as treasury stock during the fiscal year \(19 \mathrm{X} 4\). The retained earnings balance, as originally reported at June \(30,19 \mathrm{X} 3\), was \(\$ 209,000\).
\section*{Required}
Prepare a corrected combined statement of income and retained earnings for fiscal year \(19 \mathrm{X} 4\); include earnings per share. Prepare the income statement in single-step format.

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THE SOFTWARE CONNECTION, INC. INCOME STATEMENT JUNE 30, 19X4 Revenues and gains: Sales.. $733,000 Gain on retirement of preferred stock (issued for $70,000; purchased for $59,000). Paid-in capital in excess of par-common. 11,000 100,000 Total revenues and gains............ 844,000 Expenses and losses: Cost of goods sold.. $383,000 Selling expenses... 103,000 General expenses. 74,000 Sales returns..... 22,000 Prior-period adjustment-understated income tax for 19X3. 4,000 Dividends.......... 15,000 Sales discounts. 10,000 Income tax expense. 32,000 Income from operations..... Extraordinary gain.... Total expenses and losses. Other gains and losses: Operating income on discontinued segment.. Loss on sale of discontinued operations. Total other gains. Net income....... Earnings per share... 643,000 201,000 $ 30,000 25,000 (40,000) 15,000 $216,000 $10.80