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Problem - 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
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?
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