Statement of Owners Equity Final Question nancial informatio

Statement of Owner\'s Equity Final Question nancial information related to Udder Products Company, a proprietorship, for the month ended April 30, 2016, is as follows Net income for April Mark Kominksy\'s withdrawals during April Mark Kominksy\'s capital, April 1, 2016 $166,000 25,000 384,500 Required: 1. Prepare a statement of owner\'s equity for the month ended April 30, 2016. Refer to the lists of Labels and Amount Descriptions for the exact wording of the answer choices for text entries. Be sure to complete the statement heading Why is the statement of owner\'s equity prepared before the April 30, 2016, balance sheet? 2. Previous Ne Work Save and Exit Submit Assignment for All work saved. : 74.55%

Solution

Answer a. Udder Products Company Statement of Owners\' Equity For the Year Ended April 30, 2016 Mark Kominksy\'s Capital - April 1, 2016        384,500.00 Net Income        166,000.00 Sub-total        550,500.00 Less: Mark Kominksy\'s Withdrawls        (25,000.00) Mark Kominksy\'s Capital - April 30, 2016        525,500.00 Answer b. The financial statements are prepared in order: 1. Income Statement 2. Statement of Owners\' Equity 3. Balance Sheet Income Statement is first because it is used to calculate income or loss earned during the year. The profit or loss earned figure is needed for the statement of owners\' equity. The Statement of Owners\' Equity is used to calculate the final balance of owners\' equity for the year (as shown above) The ending balance of owners\' equity is shown in the balance sheet. The Balance Sheet can only be made after getting the ending balance of owners\' equity. So, Statement of Owners\' Equity is prepared before the April 30, 2016 Balance Sheet.