Example of an Owner Equity Statement

It is prepared after the income statement because the net income or net loss for the period must be reported on this statement.

Similarly, it is prepared before the balance sheet, since the owner’s equity at the end of the period must be reported on the balance sheet.

Because of this, the statement of owner’s equity is often viewed as the connecting link between the income statement and balance sheet.

Here is an example of an Owner's Equity Statement:

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