Thomas Wong, accountant for APB Bikes Ltd., was injured in a biking accident. Another employee prepared the income statement shown on the next page for the fiscal year ended September 30, 2017.

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 (25 percent) has not been applied to all appropriate figures. APB Bikes Ltd. issued 30,000 common shares in 2012 and has not issued or repurchased common shares since that date. The Retained Earnings balance, as originally reported at September 30, 2016, was $660,000. There were no preferred shares outstanding at September 30, 2017.

Required
Prepare a corrected combined statement of income and retained earnings for fiscal year 2017; include earnings per share. Prepare the income statement portion in single-step format.

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APB BIKES LTD. Income Statement September 30, 2017 Revenues and gains Sales $1,000,000 Gain on repurchase of preferred shares (issued for $60,000; repurchased for $48,000) 12,000 1,012,000 Total revenues and gains xpenses and losses Cost of goods sold Selling expenses General expenses Sales returns Correction of an error from a prior period- $478,000 133,000 60,000 13,000 10,000 14,000 18,000 98,700 understated income tax for 2016 due to error Dividends Sales discounts Income tax expense Total Income from operations Other gains and losses l expenses and losses 824,700 187,300 Operating income on discontinued segment Loss on sale of discontinued operations 16,000 Total other gains (16,000) $ 171,300 $5.71 Net income ings per share Earn