[thoughts191]

Stacy Corporation had income before income taxes for 2014 of $6,413,000. In addition, it suffered an unusual and infrequent pretax loss of $781,900 from a volcano eruption. The corporation’s tax rate is 30%. Prepare a partial income statement for Stacy beginning with income before income taxes. The corporation had 4,995,000 shares of common stock outstanding during 2014(Round earnings per share to 2 decimal places, e.g. 1.48.)

These are the only accounts available and I am confused by the extraordinary accounts that they have us using.
Extraordinary Item—Loss from Casualty,
Extraordinary Loss,
Earnings Per Share,
Income Before Extraordinary,
Item Income Before Income Tax and Extraordinary Item,
Income Tax Expense,
Net Income / (Loss)

[Curlyben]

What do YOU think ?
While we're happy to HELP we wont do all the work for you.
Show us what you have done and where you are having problems..

[thoughts191]

I don't want you to do any of the work really.. Just an explanation on the Accounts or if you know of a good example of this type of Income Statement would help.

[paraclete]

It helps to put accounts in some semblence of order, I'm assuming this is the output of some cut down accounting program

Item Income Before Income Tax and Extraordinary Item,

Net Income / (Loss)

Income Tax Expense,

Income Before Extraordinary,


Extraordinary Item—Loss from Casualty, obviously some specific one time event
Extraordinary Loss, a specific charage against profit

Net Income / (Loss) The bottom line

Earnings Per Share, a calculation may be made using income excluding extraordinary items

Extradinaries are shown below the line of operating profits/loss

[thoughts191]

Thank you! That was very helpful! Sometimes it just is so many steps it can become overwhelimg where to start. Thank you for the help! Much appreciated!