Balance Sheet Confusion

[Tony Nelson]

Hi All,

I hope you don't mind if I share some numbers as I think it will make my
question clearer.

In QuickBooks I have used "Retained Earnings" to designate earnings that
remain in the company as we move forward from one year to the next.  So
I have set up an equity account called "Retained Earnings".  

GnuCash seems to use Retained Earnings to record a running Income
Statement, yet this GnuCash Retained Earnings number does not match
anything that I can find.  

Anyway, here is part of my balance sheet:

Equity
Equity
    Common Stock		$47,686.74
    Retained Earnings	       $8,991.13
Retained Earnings              $29,896.63
Total Equity                   $29,948.14

Now if I take the Common Stock value ($47,686.74) and add it to my
retained earnings figure ($8,991), and subtract my current net income as
shown on my GnuCash Income Statement for this year (-$26,729.73) I end
up with $29,948.14 -- My Total Equity number above.

I have two questions: 

1) Why does my Net Income not show up in the Equity portion of the
balance sheet (it does under QuickBooks)?

2) What is the $29,896.63 number and where did it come from?

Thanks to any of you who take the time to work through this.
--Tony