Financial and Managerial Accounting: Ex1-18 Financial information related to Lost Trail Company

Financial and Managerial Accounting

EX1- 18 Statement of Owner's Equity
Financial information related to Lost Trail Company, a proprietorship, for the month ended June 30, 2012, is as follows: Net income for June $ 125,000. Penny Beall's withdrawals during June 18,000. Penny Beall's capital, June 1, 2012 375,000.

Instructions:
a. Prepare a statement of owner's equity for the month ended June 30, 2012.
b. Why is the statement of owner's equity prepared before the June 30, 2012, balance sheet?
Powered by